AI and data center driven power demand

“Power generation sales to users grew as market conditions remained favorable, including strong data center growth.”

“So I believe that the data center build-out helps a whole variety of products across our portfolio.”

“Also as you think about data center build-out, well, of course, that requires construction machinery as well and that helps our construction equipment business.”

“In addition, I mentioned earlier the fact that data centers is increasing power generation requirements. So in the United States, I have the stats right, electricity demand was flat between, I think, between 2007 and 2022 and now it's starting to increase.”

“So if you stop and think about our business, there are certain aspects that are not as sensitive to interest rate movements and think about the build-out in data centers around power generation, oil and gas generally and government infrastructure as well.”

“But again, the good news is that, again, back to that power generation market is quite strong. And one of the things we're also bullish about that's possibly a bit farther out is just the opportunity for distributed generation.”

“CAT reciprocating engine and solar turbine demand for power generation is expected to remain strong, largely due to continued data center growth relating to cloud computing and Generative AI.”

“We do see an increased opportunity for those distributed power generation opportunities over time. And we think that's a secular growth trend again that we're very excited about.”

“As more renewables are added to the grid, as there's more grid instability issues, it creates an opportunity for us, we believe, to sell both reciprocating engines and gas turbines and distributed power generation applications distributed throughout the grid. And we're very excited about that opportunity.”

“Overall strength in power generation for both prime and backup power applications continues to be driven by increasing energy demand to support data center growth related to cloud computing and generative AI.”

“If you stop and think about some of the things that are happening, we talked about data center build-outs and all the rest - I mean, again you think about commodities like copper, that should be a positive for that over time.”

“Demand remains strong in power generation for both Cat reciprocating engines and solar turbines. Our ongoing discussions with data center customers give us confidence in our long-term outlook.”

“We've mentioned and you're all well aware of the opportunities in power generation and demand for power, both distributed generation and data centers. We're going to move a lot of natural gas, I believe.”

“We have direct relationships with all the hyperscalers and other data center -- large data center customers. So we're in constant communication with them.”

“Power generation sales to users grew significantly by 58%, primarily due to demand for reciprocating engines for data center applications.”

“I would say in this year, we're pretty full on large engines related to the data center standpoint.”

“Power generation grew by 19%, primarily due to demand for reciprocating engine for data center applications.”

“we're planning with the largest data center customers years in advance. So we have line of sight to their schedules out into the time.”

“We continue to stay close to our largest data center customers and receive regular feedback on their long-term demand.”

“We expect full year growth for power generation as demand remains strong for both prime and backup power applications driven by increasing energy demands to support data center growth, related to cloud computing and generative AI.”

“The largest growth came from power generation with a 33% increase, primarily due to demand for reciprocating engines for data center applications.”

“We continue to stay close to our largest data center customers and receive regular feedback on their long-term demand expectations.”

“We are also pleased by healthy orders for the prime power applications as evidenced by recent announcements with Joule Capital Partners and Hunt Energy Company.”

“Demand remains robust, driven by data center growth related to cloud computing and generative AI.”

“Lastly, on AspenTech, certainly, the GGM business has seen accelerated growth driven by the investments in the grid, and we're pretty excited about that.”

“It's been manifested in three ways, predominantly in the marketplace. Extension of life of existing facilities, the bringing back of certain nuclear facilities, which were mothballed years ago, and then the build-out of new combined cycle generating facilities.”

“Yes, Andrew, Lal here. So yes, we did highlight that about two quarters ago in terms of the acceleration that we're seeing in power generation, transmission and distribution investments, particularly in that case, in North America, driven by data center investment and the requirements for power.”

“North America is expected to grow in the low single digits, aided by LNG life sciences and a strong outlook for power generation, transmission and distribution due to the significant demand growth for electricity related to AI and data centers.”

“Emerson Electric Co.'s recently announced strategic collaboration with Prevalon Energy played an instrumental role in our selection for this project, as the collaboration brings together Emerson Electric Co.'s automation and control expertise with advanced energy storage to help data center operators improve reliance, resilience, reliability, and efficiency in increasingly power-constrained environments.”

“Electrification and power generation data centers, investments in AI, modernization of our grid and generating capacity, near shoring impacting life sciences, and semiconductor, a robust open energy policy that enables the development of shale gas and the export of LNG to our partners.”

“First, Emerson Electric Co. was chosen to automate on-site power generation for a new 1.7 gigawatt AI data center in The United States, helping to meet accelerated deployment timelines and mission-critical reliability.”

“We are also seeing healthy investments in grid digitization with ACB and AspenTech's digital grid management suite up 25% year over year.”

“Orders in our Ovation business were up 74%, driven by large project wins, including behind-the-meter data centers and fleet modernizations for major utility customers. We expect growth in the mid-teens for the year.”

“AI and digital transformation of manufacturing are leading customers to deploy significant capital towards greenfield and modernization projects for power generation, especially in The U.S.”

“While we've been shifting our portfolio towards higher growth markets like auto electrification, industrial automation, data centers and semis, climate tech and others, these efforts aren't material enough today to offset erosion in our core.”

“We saw particularly strong demand for eBonding in electronics and hearing and body protection in personal safety. In addition, growth was driven from a large few power grid orders as anticipated in Asia and the U.S. for aluminum high-capacity conductors and power cable accessories for data centers.”

“Another one is our Expanded Beam Optics or EBO connector, which is an optical interconnect designed for data centers that reduces installation time, cleaning, and maintenance while delivering exceptional performance.”

“For building automation, we expect full-year sales growth above mid-single digits, highlighted by strength in growing data center and healthcare end markets.”