Cummins Secures 2GW AI Data Center Power Deal, Hits 52-Week Highs
CMI•Cummins agreed to supply 2 gigawatts of power capacity for Circe Energy’s West Texas AI data center campus, driving its stock to fresh 52-week highs. Management now forecasts 15%–25% revenue growth in its global power generation segment this year on accelerating data center demand.
1. Data Center Power Agreement
Cummins has signed a 2-gigawatt power supply agreement with Circe Energy for its West Texas AI data center campus, marking the company’s largest utility-scale contract in the infrastructure sector and diversifying its revenue beyond traditional engine manufacturing.
2. Stock Performance and Market Correlation
The stock climbed to fresh 52-week highs as investors responded to the AI infrastructure deal; over the past year, Cummins captured 188% of S&P 500 daily gains and absorbed 119% of its declines, reflecting an asymmetric risk-return profile with a five-year risk-adjusted return of 0.85.
3. Financial Outlook and Segment Growth
Management now projects 15%–25% revenue growth in the global power generation segment this year, driven by accelerating data center demand, while the North American truck market recovers faster than expected and the company divests its low-pressure fuel cell business to streamline operations.
