Hyperscalers Will Spend $750 Billion on AI This Year. Cummins Sells the Backup Power.

Cummins is riding the AI infrastructure wave as hyperscalers deploy record capital. GOOG parent Alphabet, AMZN, META, MSFT, and ORCL are collectively spending approximately $750 billion on AI infrastructure in 2026, creating surging demand for the backup power systems CMI manufactures.

CMI's Power Systems segment posted 19% year-over-year sales growth, driven by data center buildouts. The company highlighted the step-change in power requirements: AI racks now consume up to 600 kilowatts each, a fifty-fold increase from traditional 12-kilowatt server racks. That translates directly into higher-capacity generators and backup systems per facility.

Cummins is expanding its role beyond emergency diesel generators. The company is positioning microgrid solutions as primary power sources for data centers, not just standby capacity. This shift could widen margins and deepen customer lock-in as hyperscalers race to secure reliable electricity for GPU-intensive workloads.

The $750 billion hyperscaler spend estimate frames the scale of the opportunity, with power infrastructure representing a meaningful slice of total capex alongside chips and cooling.