American Intelligence & Power Forms Strategic Alliance with Caterpillar and Boyd CAT to Deploy 2 Gigawatts of Dedicated Power for Hyperscale AI Infrastructure

Rhea-AI Summary

American Intelligence & Power (AIP), Caterpillar (NYSE: CAT) and Boyd CAT formed a strategic alliance and executed a purchase agreement to support AIP's Monarch Compute Campus.

AIP ordered 2 GW of fast-response natural gas generator sets with deliveries from September 2026 through August 2027, augmented by battery storage; Monarch targets 8 GW planned capacity and uses West Virginia microgrid designation.

Positive

• 2 GW generator order scheduled for Sept 2026–Aug 2027
• Monarch target of 8 GW planned generation capacity
• G3516 gensets can ramp to full load in ~7 seconds
• Includes vendor financing via Caterpillar Financial

Negative

• Initial capacity relies on natural gas generation
• Delivery window spans 12 months, exposing schedule risk
• Vendor financing is subject to customary terms

News Market Reaction

+0.68%

7 alerts

+0.68% News Effect

+2.2% Peak in 6 min

+$2.03B Valuation Impact

$301.04B Market Cap

4K Volume

On the day this news was published, CAT gained 0.68%, reflecting a mild positive market reaction. Argus tracked a peak move of +2.2% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $2.03B to the company's valuation, bringing the market cap to $301.04B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Dedicated power order: 2 gigawatts Online capacity target: 2 gigawatts in 2027 Delivery window: Sep 2026–Aug 2027 +3 more

6 metrics

Dedicated power order 2 gigawatts Fast-response natural gas generator sets for Monarch initial phase

Online capacity target 2 gigawatts in 2027 Monarch compute campus initial capacity online timing

Delivery window Sep 2026–Aug 2027 Scheduled delivery period for Caterpillar generator sets

Ramp time Approximately seven seconds Time to ramp Caterpillar G3516 from zero to full load

Monarch total target 8 GW planned Monarch campus planned generation capacity

Initial generator order 2 GW Supports Monarch’s initial phases of development

Market Reality Check

Price: $657.36 Vol: Volume 1,785,395 is below...

normal vol

$657.36 Last Close

Volume Volume 1,785,395 is below the 20-day average of 2,245,027 (relative volume 0.8). normal

Technical Price 638.91 trades above the 200-day MA at 460.64 and sits 2.57% below the 52-week high of 655.78.

Peers on Argus

CAT gained 0.47% with mixed but mostly positive peers: DE +0.36%, PCAR +3.7%, TE...

CAT gained 0.47% with mixed but mostly positive peers: DE +0.36%, PCAR +3.7%, TEX +1.54%, ALG +1.2%, while CNH slipped -0.37%. No sector-wide momentum signal was detected.

Common Catalyst Only one peer, TEX, had same-day news tied to an earnings-related conference call; no broad AI or data-center theme across peers.

Historical Context

5 past events · Latest: Jan 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Earnings date notice	Neutral	-0.0%	Scheduled Q4 and full-year 2025 financial results release and webcast details.
Jan 14	Leadership transition	Neutral	+1.3%	Retirement of Construction Industries leader and internal successor appointment.
Jan 07	AI partnership	Positive	-4.3%	Expanded NVIDIA collaboration to embed AI across equipment and operations.
Jan 07	AI strategy update	Positive	-4.3%	CES unveiling of AI-powered machines and long-term tech investment plans.
Jan 06	Board leadership change	Neutral	-4.3%	CEO Joseph E. Creed elected Chairman, succeeding long-tenured Executive Chairman.

Pattern Detected

Recent AI-focused announcements for CAT saw negative price reactions, while management and governance updates drew muted to mildly positive responses.

Recent Company History

Over the last month, Caterpillar issued several strategic and governance updates. Board and leadership transitions on Jan 6–14, 2026 produced modest to negative moves, suggesting limited price sensitivity to management changes. In contrast, two AI-focused announcements on Jan 7, 2026, highlighting collaborations with NVIDIA and major digital investments, coincided with -4.26% reactions. Today’s AI infrastructure power alliance extends this AI narrative into data center energy solutions, building on earlier innovation messaging rather than shifting the strategic direction.

Market Pulse Summary

This announcement highlights Caterpillar’s role supplying 2 GW of fast-response natural gas generati...

Analysis

This announcement highlights Caterpillar’s role supplying 2 GW of fast-response natural gas generation and battery-backed power systems for AI data centers, reinforcing its broader AI and digital strategy. With CAT trading near its 52-week high and above its 200-day MA, the deal builds on earlier AI collaborations while adding exposure to data center energy infrastructure. Investors may watch follow-on phases toward Monarch’s 8 GW target and future AI-related orders for evidence of sustained momentum.

Key Terms

hyperscale, battery energy storage systems, microgrid, behind-the-meter, +3 more

7 terms

hyperscale technical

"deliver long-term, high-reliability power solutions to hyperscale and enterprise data center customers"

Hyperscale describes the ability of a system or operation to grow rapidly and handle extremely large amounts of work or data. It’s like a massive factory that can quickly expand its production capacity to meet soaring demand. For investors, hyperscale indicates a business’s potential to scale efficiently, often leading to increased growth and profitability.

battery energy storage systems technical

"augmented with battery energy storage systems designed to handle the extreme load swings"

Large, grid-connected rechargeable battery systems that store electricity for later use, like a giant household battery for cities or power plants. They matter to investors because they help balance supply and demand, enable more renewable energy, reduce outage risk, and create revenue through services such as selling stored power at peak times or participating in grid stability programs, while requiring upfront capital and having performance limits tied to lifespan and degradation.

microgrid technical

"By leveraging our existing microgrid designation from the State of West Virginia"

A microgrid is a small, local electricity system that combines power sources (like solar panels, small generators) and storage (batteries) with controls so it can run either connected to the main utility grid or on its own during outages. For investors, microgrids matter because they reduce outage risk, can lower energy costs, enable new revenue streams (selling excess power or grid services), and reflect growing demand for resilient, decentralized energy infrastructure.

behind-the-meter technical

"well-suited for behind-the-meter data center applications due to rapid start capability"

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

continuous-duty technical

"high reliability in continuous-duty operation"

Continuous-duty describes equipment, systems, or operations designed and scheduled to run without interruption over long periods, like a factory machine that operates 24/7 or a service team on around-the-clock shift. For investors it signals durable capacity and steady revenue potential but also higher maintenance, energy costs and regulatory oversight risk—similar to owning a vehicle that’s always driving: more useful, yet needing more upkeep.

selective catalytic reduction (SCR) medical

"advanced emissions controls, including selective catalytic reduction (SCR), to support ultra-low emissions"

Selective catalytic reduction (SCR) is an emissions-control system fitted on vehicles and industrial engines that turns harmful nitrogen oxides in exhaust into harmless nitrogen and water by injecting a small amount of liquid additive into a hot catalytic chamber. For investors, SCR matters because it affects compliance costs, operating expenses (buying additive and maintenance), product design and market access under air-quality rules—much like a filtration upgrade that a building must install to meet new safety codes.

vendor equipment financing financial

"The alliance also includes vendor equipment financing through Caterpillar Financial"

Vendor equipment financing is when a seller or manufacturer offers loans or leases so customers can acquire its machinery, hardware, or other capital goods instead of paying the full price up front; think of it as a car dealer letting you pay over time. Investors care because such programs can boost sales and make products easier to buy, while also tying up capital, creating credit and default risk, and affecting reported revenue, margins and cash flow.

AI-generated analysis. Not financial advice.

IRVING, Texas, Jan. 28, 2026 /PRNewswire/ -- American Intelligence & Power Corporation ("AIP Corp"), Caterpillar Inc. (NYSE: CAT), and Boyd CAT today announced a strategic alliance and the execution of a purchase agreement supporting the development of AIP Corp's flagship site, the Monarch Compute Campus ("Monarch"), a large-scale, multi-phase power generation and infrastructure platform designed to deliver long-term, high-reliability power solutions to hyperscale and enterprise data center customers.

Power delivery begins in 2026 with 2 gigawatts (GW) online in 2027
Under the purchase agreement, AIP Corp has ordered 2 GW of fast-response natural gas generator sets to support the initial phase of Monarch, with deliveries scheduled from September 2026 through August 2027. The fast-response generation equipment will be augmented with battery energy storage systems designed to handle the extreme load swings of AI data centers. The Caterpillar equipment and battery systems are expected to be commissioned and ready to deliver power within months of equipment delivery, supporting Monarch's accelerated time-to-market strategy to meet rapidly growing power demand from data centers. This 2-GW order supports Monarch's initial phases, with additional phased expansion planned over time.

"This strategic alliance reflects a shared commitment to delivering reliable, scalable, and capital-efficient power solutions on an accelerated timeline," said Daniel J. Shapiro, CEO of American Intelligence & Power Corp. "Our design is purpose-built for AI data center operations, combining fast-response natural gas generation with battery energy storage to manage rapid load variability and deliver consistent power quality at scale. By leveraging our existing microgrid designation from the State of West Virginia, we can bring new capacity online quickly while supporting long-term grid reliability and resilience, without increasing rates or adding costs for existing utility customers."

"This collaboration reflects Caterpillar and our dealers' continued focus on supporting customers that require primary, continuous-duty power at scale through our broad energy solutions portfolio," said Melissa Busen, senior vice president of Electric Power, Caterpillar. "Projects like Monarch demonstrate how Caterpillar's natural gas generation platforms are being deployed as core infrastructure for data centers and other power intensive applications where reliability, speed of deployment, and lifecycle performance are critical."

"Our customers depend on us for reliability, responsiveness and deep technical support, and this project is a powerful example of that commitment," said Andrew Boyd, president & CEO of Boyd CAT. "The scale of the Monarch project demands precision and performance, and Boyd CAT is ready to deliver both as AIP Corp brings new generation capacity online."

The Caterpillar G3516 fast-response natural gas generator sets are well-suited for behind-the-meter data center applications due to rapid start capability, load-following performance, and high reliability in continuous-duty operation. The G3516 platform can ramp from zero to full load in approximately seven seconds, supporting AI-driven workloads characterized by rapid load fluctuations and stringent power quality requirements. The gensets will operate on natural gas and incorporate advanced emissions controls, including selective catalytic reduction (SCR), to support ultra-low emissions performance and compliance with all relevant air permitting requirements.

No impact to existing utility customers 
Monarch will use advanced monitoring and control systems to support high availability, operational resilience, and predictable lifecycle performance. Designed as a fully self-supplied, behind-the-meter power platform, Monarch generates power onsite and does not require incremental utility transmission or distribution infrastructure to serve its load. With a target of 8 GW of planned generation capacity and an existing West Virginia microgrid designation,

Monarch is designed to not increase rates or add costs for existing utility customers and will support long-term grid reliability and resilience.

Prioritizing efficiency, service, and vendor financing 
In parallel with the purchase agreement, AIP Corp and Caterpillar have entered into a strategic alliance agreement establishing a streamlined framework for collaboration focused on equipment optimization, phased expansion planning, operations and maintenance strategy, and long-term lifecycle performance, including service readiness and parts support planning. The alliance also includes vendor equipment financing through Caterpillar Financial, subject to customary terms and conditions, and aligned with equipment delivery phasing to support efficient project execution.

About American Intelligence & Power Corporation 
American Intelligence & Power Corporation is a next-generation AI infrastructure company building large-scale, fully integrated power and compute platforms purpose-built for intelligence workloads. AIP develops, owns, and operates high-reliability, onsite energy and microgrid systems designed to support hyperscale and enterprise data center customers requiring continuous-duty performance, rapid deployment, and sovereign operational control. Anchored by its flagship Monarch Compute Campus in West Virginia, AIP is establishing a repeatable national model for AI power infrastructure that pairs utility-grade generation, energy storage, and advanced controls into purpose-built AI platforms. AIP is evaluating additional sites across the United States to replicate this strategy and expand reliable, scalable power capacity for the AI economy. For more information, visit www.AIPCorp.com.

About Caterpillar
With 2024 sales and revenues of $64.8 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Power & Energy – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.

About Boyd CAT 
Boyd CAT is a family-owned business and the authorized Caterpillar dealer with twenty plus locations serving West Virginia, Kentucky, Southern Indiana and Southeastern Ohio. With a legacy spanning more than a century, the company is committed to delivering quality equipment, rentals and parts, dependable service, and forward-thinking solutions across industries such as construction, energy, mining, paving and beyond. In addition, Boyd CAT operates rebuild centers focused on servicing and rebuilding small and large bore engines. For more information, visit www.boydcat.com.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/american-intelligence--power-forms-strategic-alliance-with-caterpillar-and-boyd-cat-to-deploy-2-gigawatts-of-dedicated-power-for-hyperscale-ai-infrastructure-302673060.html

SOURCE Caterpillar Inc.

FAQ

What did AIP announce about the Monarch power order and CAT (NYSE: CAT) on January 28, 2026?

AIP ordered 2 GW of fast-response natural gas generator sets with deliveries from September 2026 through August 2027. According to AIP, the order supports Monarch's initial phases and pairs gensets with battery storage for AI data center loads.

How much total capacity does Monarch plan and when will 2 GW be online for CAT-related equipment?

Monarch targets a planned generation capacity of 8 GW, with the 2 GW initial phase delivering power starting in 2026 and online in 2027. According to AIP, phased expansion is planned over time using the West Virginia microgrid designation.

What generator model did AIP order from Caterpillar (CAT) and what performance does it offer?

AIP ordered Caterpillar G3516 fast-response natural gas generator sets, which can ramp to full load in about seven seconds. According to Caterpillar, the platform supports rapid load-following and continuous-duty operation for data-center use.

Will Monarch require new utility transmission or raise rates for existing customers according to AIP and CAT?

Monarch is designed as a fully self-supplied, behind-the-meter platform that does not require incremental utility transmission. According to AIP, the project is intended not to increase rates or add costs for existing utility customers.

How will battery systems and emissions controls factor into the Monarch deployment with CAT equipment?

Battery energy storage will augment gensets to manage extreme AI load swings, and gensets will include selective catalytic reduction for ultra-low emissions. According to AIP and Caterpillar, these systems support power quality and air permitting compliance.

Does the alliance with Caterpillar (CAT) include financing for the Monarch equipment and what are the terms?

The alliance includes vendor equipment financing through Caterpillar Financial, aligned to delivery phasing to support execution. According to AIP, financing is available but remains subject to customary terms and conditions.