Cummins expands power solutions for AI data centers

Cummins is expanding its role in the artificial intelligence infrastructure market by providing critical power solutions for hyperscale data centers. As major technology companies like Alphabet, Amazon, Meta, Microsoft, and Oracle are projected to spend approximately $750 billion on capital expenditures by 2026, the demand for reliable energy is surging. AI workloads require significantly more power than traditional computing; while standard racks average 12 kilowatts, next-generation AI racks can reach 600 kilowatts or more.

To address these needs, Cummins is deploying a 5-MWh battery energy storage system (BESS) for a large U.S. data center project. This represents the company’s largest BESS deployment to date. Unlike traditional backup systems that only activate during outages, this lithium iron phosphate (LFP) battery system is designed to manage rapid fluctuations in electricity demand caused by AI workloads, helping to stabilize the connection to the utility grid.

In addition to battery storage, Cummins is seeing growth in its Power Systems segment through the sale of diesel and natural gas generator sets. The company is also moving into primary power solutions, such as a recent agreement with Circe Energy to provide high-powered natural gas generators for a high-performance-computing data center in West Texas.