Caterpillar stock tops $1,000 as Solar Turbines tackles $10 billion Texas power project
CAT•Solar Turbines, a Caterpillar subsidiary, will supply part of the 2.67GW capacity for Chevron’s 20-year Project Kilby power facility in West Texas, targeting mid-teen returns and over $10 billion in local tax revenue. Caterpillar stock surged past $1,000 on growing AI-driven demand for industrial equipment used in data centre construction.
1. Solar Turbines' Role in Project Kilby
Solar Turbines, a Caterpillar subsidiary, will supply additional capacity alongside GE Vernova turbines in the co-located 2.67GW power facility to serve Microsoft’s West Texas data centre under Chevron’s 20-year contract.
2. Project Kilby Scope and Economic Impact
Project Kilby aims for a phased build-out reaching 2.67GW by 2028, targets mid-teen returns, and is projected to generate over $10 billion in state and local tax revenue while supporting almost 2,000 jobs and reducing strain on the regional grid.
3. Caterpillar Stock Milestone
Caterpillar shares recently crossed the $1,000 threshold as surging AI-driven data centre expansions increase demand for heavy equipment, underscoring the company’s role in supporting new infrastructure investments for cloud and AI platforms.
