Microsoft’s Quest for Power: Joe Creed’s Caterpillar as the Supplier

Microsoft and Caterpillar Collaborate for AI Data Centers

Microsoft (NASDAQ: MSFT) is significantly investing in artificial intelligence, with commitments totaling approximately $862 billion from six major tech companies for future AI data centers. Microsoft alone accounts for nearly 23% of this total, as reported by Bloomberg. In response to the escalating power demand for these facilities, Microsoft has partnered with Chevron (NYSE: CVX) to operate a natural gas power plant dedicated to supporting its data center. Caterpillar (NYSE: CAT) will also supply generators to expedite the power setup for these facilities.

Caterpillar’s Growth Potential

Caterpillar ended the first quarter of 2026 with a record backlog of $63 billion, marking an almost 80% year-over-year increase and signaling strong future sales potential. The company’s first-quarter sales rose by 22%. However, its stock price has doubled over the past year, raising concerns about whether it may be currently overvalued with price-to-sales and price-to-earnings ratios exceeding their five-year averages.