Cummins (CMI)

Power generation + backup gensets (Cummins) — engines + standby power for data centers

AI exposure 9% — derived from reported segment revenue, not asserted.

Where it sits

Physical Infrastructure → Power & Electrical Equipment · figures rebased to Q2 2026, reported 2026-08-04

No business is a majority here. Power generation (gensets, standby/prime power) for DATA CENTERS + mission-critical leads 2 businesses in this sub-tier that together are 26% of revenue — placement rule 2 puts the primary with the largest business, so Power & Electrical Equipment. The remaining 33% (Diesel/natural gas engines (trucks, industrial)) is deliberately off-map.

Reported segments

Distribution — 35.1% of revenue
Components — 25.7% of revenue
Engine — 24.8% of revenue
Power Systems — 12.9% of revenue
Accelera (zero-emissions) — 1.5% of revenue

Cummins ($9,457M Q2 2026 external sales, with the 2026 outlook raised). From the 10-Q segment note, external sales were: Distribution $3,320M (35.1%), Components $2,431M (25.7%), Engine $2,349M (24.8%), Power Systems $1,217M (12.9%, +19% YoY on backup-power demand in the US and China) = primary B2 Power & Electrical Equipment, and Accelera $140M (1.5%, +38%). Only Power Systems and the power-generation slice of Distribution are on-map; engines, components and the zero-emissions unit are not. Note intersegment sales are large ($2,244M) and are excluded — these are external sales only, so…

How the 9% is built

Distribution — 35.1% of revenue × 8% AI-driven (disclosed). Parts and service distribution, of which the power-generation half reaches data-centre backup
Components — 25.7% of revenue × 0% AI-driven (disclosed). Emissions, turbo and drivetrain components for vehicles
Engine — 24.8% of revenue × 0% AI-driven (disclosed). Diesel and natural gas engines for on- and off-highway vehicles
Power Systems — 12.9% of revenue × 45% AI-driven (disclosed). Standby generators are being bought for data-centre backup power, which is what drove the 19% growth, alongside conventional industrial and utility demand
Accelera (zero-emissions) — 1.5% of revenue × 0% AI-driven (disclosed). Electrified powertrains and electrolyzers

Investment read

Moat. Engine and powertrain scale plus the global distribution and service network — the part rivals cannot replicate quickly — with Power Systems as the data-center vector. Power Systems reached $2.26B in Q2 2026, +19% YoY, and management targets ~$9B of data-center revenue by 2030 against ~$5B in 2026E.

Bottleneck / pricing power. Real pricing power in large-bore gensets while lead times run 1-2+ years and power-gen backlog extends into 2028 — FY2026 power generation revenue is guided +15% to +25%. But the peak has been marked: Power Systems segment EBITDA stepped down from Q1's record 29.5% to 24.5%, with management calling 25-26% the realistic run-rate.

Role in the AI stack. The backup/standby-power (genset) layer for data centers.

Connected companies

Equinix (EQIX) — CMI supplies: backup power generation
Caterpillar (CAT) — CMI competes with: Backup power generation / engines for data centers (gensets vs recip engines)
Microsoft (MSFT) — CMI supplies: data-center backup gensets — Cummins is a top-2 DCC genset maker; documented Microsoft energy-lab collaboration, specific Azure genset POs undisclosed
Digital Realty Trust (DLR) — CMI supplies: data-center backup power for Digital Realty
CoreWeave (CRWV) — CMI supplies: data-center backup power generators for CoreWeave
Meta Platforms (META) — CMI supplies: backup power generators for META AI data centers
Alphabet (GOOGL) — CMI supplies: backup power generators for GOOGL AI data centers
Amazon (AMZN) — CMI supplies: backup power generators for AMZN AI data centers
Oracle (ORCL) — CMI supplies: standby diesel/gas gensets for AI data centers (no Oracle-specific evidence)
Bloom Energy (BE) — CMI competes with: on-site power — Bloom fuel cells vs Cummins gas gensets

Others in Power & Electrical Equipment

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