Atlas to buy $840 million in Caterpillar power assets as energy demand rises

March 10 (Reuters) - Atlas Energy AESI.N said on Tuesday it had signed a deal with Caterpillar CAT.N to secure about $840 million worth of power-generation equipment through 2029, a move aimed at locking in manufacturing capacity as U.S. electricity demand rises.

Power consumption in the U.S. is set to accelerate sharply this year and the next, driven by rapid growth in artificial intelligence and cryptocurrency data centers as well as increased electrification of heating and transport.

Atlas said the deal covers roughly 1.4 gigawatts (GW) of incremental natural gas power generation assets scheduled for delivery between 2027 and 2029.

The new capacity will be supplied through large-load reciprocating generator sets, including CG260-16 units for behind-the-meter (BTM) installations and G3520 series units capable of supporting both BTM and bridge-power applications.

Atlas expects to own and operate about 2 GW of power generation assets by 2030, following the deployment of new equipment secured under the deal.