Caterpillar Inc. (NYSE:CAT) and Hunt Energy Company, L.P. announced on Thursday a strategic partnership to develop independent energy systems for data centers. The deal focuses on delivering reliable, always-available power to support rising digital infrastructure demand.
The collaboration combines Caterpillar’s power system expertise with Hunt’s infrastructure and financing capabilities.
The first project will roll out in Texas, with plans to expand across North America. The companies expect to build up to one gigawatt of generation capacity for data centers, setting the stage for future international deployment. “Starting in Texas, we’re laying the foundation for a new era of data center power infrastructure,” said Hunter Hunt, CEO of Hunt Energy.
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Caterpillar will provide diesel and gas generators, turbines, and advanced controls, supported by monitoring and service to ensure consistent operations on or off the grid. Hunt Energy will contribute its experience in energy infrastructure and battery storage, having deployed more than 310 megawatts of storage projects in recent years.
Melissa Busen, senior vice president of Caterpillar Electric Power, said Hunt’s infrastructure expertise complements Caterpillar’s leadership in power systems, enabling both to meet the strict demands of data centers. Together, the companies bring nearly two centuries of combined industry experience.
Industry Outlook
Analysts have grown more optimistic about Caterpillar’s growth potential. A recent upgrade noted that one analyst has turned bullish amid expectations for expanding data center energy needs.
Sector-focused ETFs include the Industrial Select Sector SPDR Fund (NYSE:XLI) and the Global X Data Center REITs & Digital Infrastructure ETF (NASDAQ:VPN).
PriceAction: CAT shares are trading lower by 1.02% to $416.32 at last check Thursday.
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