Hyperscalers Will Spend $750 Billion on AI This Year. Cummins Sells the Backup Power.
AI's power problem is becoming a growth engine for Cummins.
Overview
Data centers can't simply shut down when the grid fails. That's why these facilities require enormous backup generators capable of providing electricity almost immediately.
That's exactly what Cummins (NYSE: CMI) provides. The company best known for diesel engines also happens to be a major supplier of backup power for data centers, and that's becoming increasingly valuable as AI spending soars.
Details
S&P Global estimates that Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Oracle (NYSE: ORCL) will collectively spend approximately $750 billion on capital expenditures in 2026, equal to about 38% of their combined revenue. Much of that spending is being driven by AI and the data centers required to support it. Cummins is already cashing in.
Source
Originally published at www.fool.com.