ProPetro Secures Up to 2.1GW in Agreement with Caterpillar

ProPetro Holding Corp. has announced a major expansion of its power generation capabilities, with a new agreement set to support the rising energy demands of data centres alongside oil and gas and industrial applications.

The company’s PROPWR business unit has entered into a strategic framework agreement with Caterpillar to acquire up to 2.1GW of power generation assets over the next five years.

The move reflects growing pressure on energy infrastructure as data centre capacity scales to meet AI-driven workloads.

“We are pleased to build upon the strong momentum PROPWR has established since its inception,” says Travis Simmering, President of PROPWR.

“This agreement marks a major milestone in the expansion of our strategic collaboration with Caterpillar, reinforcing our position as a leader in high-efficiency power-as-a-service solutions.” 

Scaling power for data centre demand

The agreement outlines a minimum purchase of 1.5GW of incremental power generation capacity, with the option to increase this to approximately 2.1GW.

When combined with around 550MW previously ordered, PROPWR is expected to reach approximately 2.6GW of total capacity delivered by the end of 2031, with full deployment anticipated in 2032.

As hyperscale and colocation facilities grow in size, access to reliable energy has become a defining constraint on development timelines. Data centre experts are seeking secure and rapidly deployable power sources.

PROPWR is positioning itself to supply energy infrastructure directly to customers that may otherwise face delays in grid connection or capacity limitations.

Power-as-a-service gains traction

The partnership with Caterpillar highlights the increasing role of modular and distributed generation in supporting data centre operations. Site planners are turning to integrated energy solutions that can be deployed alongside new facilities rather than relying solely on grid expansion.

“By leveraging the global reputation of the Caterpillar brand and the proven success of our historical collaboration, we are poised to enhance reliability, drive operational excellence and deliver exceptional value to our customers,” says Sam Sledge, ProPetro’s Chief Executive Officer.

 On-site or near-site generation can provide both primary power and backup resilience, supporting uptime requirements while enabling faster project delivery.

Supporting high-density workloads

The rapid growth of AI and high-performance computing is intensifying energy consumption across the sector. Facilities designed for these workloads often require significantly higher power densities, placing additional strain on both local grids and existing energy strategies.

Caterpillar’s role in the agreement centres on supplying proven generation technologies at scale, supporting PROPWR’s ability to meet these evolving requirements.

“This agreement reflects the strength of our long-standing collaboration with ProPetro and a shared focus on helping customers meet growing power needs with reliable, scalable solutions,” says Tara Rossman, Senior Vice President of Caterpillar Oil & Gas and Marine.

“As demand from data centers and other energy intensive applications continue to accelerate, Caterpillar is committed to supporting PROPWR with proven power generation technologies and the global scale needed to execute over the long term.”

Meeting reliability and deployment timelines

As developers look to bring new facilities online, particularly those supporting AI workloads, partnerships that combine equipment manufacturing with service-led delivery models are becoming more prominent.

PROPWR’s planned capacity build-out reflects this trend, offering a scalable route to securing power without relying entirely on traditional grid upgrades.

With multi-gigawatt demand emerging across multiple sectors, the ability to deliver power infrastructure in parallel with data centre construction is becoming a critical factor in project viability.