Big Tech Is on Pace to Spend $735 Billion on AI Data Centers in 2026. These 3 Industrial Stocks Collect the Checks.
Big tech companies are spending billions on artificial intelligence (AI) initiatives, but another group is benefiting from the AI boom: industrial companies. Caterpillar, Eaton, and GE Vernova are supplying the equipment and infrastructure needed to support AI data centers.
Intelligence analysis by Llama
Big tech companies are spending billions on AI initiatives, but industrial companies like Caterpillar, Eaton, and GE Vernova are quietly collecting the checks by supplying the equipment and infrastructure needed to support AI data centers.
Imagine you're building a huge Lego castle, and you need a lot of electricity to power all the lights and computers. That's what's happening with AI data centers - they need a lot of electricity to work, and companies like Caterpillar, Eaton, and GE Vernova are providing the equipment and infrastructure to make that happen.
Analysis
Caterpillar: Powering the AI Boom with Generators and Turbines
Caterpillar is a well-known industrial company that supplies heavy equipment, but it's also a key player in the AI infrastructure market. The company's Power & Energy segment delivered $8.2 billion in revenue in the second quarter, up 17% year over year. This growth is driven by the increasing demand for on-site and backup power generation to support AI data centers. Caterpillar's generators and turbines are essential for providing the electricity needed to power these data centers.
Eaton: Moving and Managing Electricity for AI Data Centers
Eaton is another industrial company that's benefiting from the AI boom. The company's Electrical Americas segment grew 18% organically to $4 billion in the second quarter, a segment record. Within that segment, data center revenue grew 65%. Eaton's electrical equipment and systems are critical for moving and managing electricity to support AI data centers.
GE Vernova: Electrifying the AI Infrastructure Market
GE Vernova is the energy-focused spinoff of General Electric that builds turbines, grid equipment, and electrification technology. The company's second-quarter results included 22% revenue growth and an 88% increase in orders. GE Vernova's data center orders reached over $5 billion year-to-date, more than double its 2025 total. The company's Electrification revenue is guided to grow organically by 18% to 20% in 2026, with gas turbine backlog and slot reservation agreements expected to reach at least 125 gigawatts by year's end.
The takeaway from these three industrial companies is that AI spending still needs real-world industrial infrastructure to support it. Caterpillar is supplying the equipment and power generation, Eaton is moving and managing the electricity, and GE Vernova is helping to build the power generation and grid infrastructure behind it all. These companies are quietly collecting the checks as the AI boom continues to grow.
Key points
- Big tech companies are spending billions on AI initiatives, but industrial companies like Caterpillar, Eaton, and GE Vernova are quietly collecting the checks.
- Caterpillar's Power & Energy segment delivered $8.2 billion in revenue in the second quarter, up 17% year over year.
- Eaton's Electrical Americas segment grew 18% organically to $4 billion in the second quarter, a segment record.
- GE Vernova's data center orders reached over $5 billion year-to-date, more than double its 2025 total.
If the AI boom continues to grow, these industrial companies are likely to see increased demand for their products and services, leading to higher revenue and profits.
However, if the AI market experiences a downturn or if there are significant regulatory changes, these companies may see a decrease in demand for their products and services, leading to lower revenue and profits.
