Cummins (CMI) Citi’s 2025 Global Industrial Tech and Mobility Conference summary

Global power demand and industry drivers

• Data center growth and electrification are now major drivers of rising power demand, reversing years of stagnation in the U.S. and globally.

• Utilities face challenges meeting demand due to slow build times for new plants and the need for grid stability as renewables increase.

• Life extension and retrofitting of existing fossil units are significant, with record backlogs for plant upgrades and outages.

• Backup power generation, especially for data centers, is in high demand to ensure reliability amid more frequent outages and weather events.

• Global trends mirror the U.S., with strong growth in China, India, and Europe, driven by both economic development and cybersecurity concerns.

Energy transition and technology integration

• The energy transition requires a mix of all energy sources, with renewables growing but not able to provide 24/7 coverage alone.

• Software investment is critical for managing complex portfolios of fossil and renewable assets, ensuring grid stability and market participation.

• Remote operation centers and advanced control systems are increasingly used to manage unmanned or lightly staffed renewable sites.

• Storage solutions, including leveraging consumer assets like EV batteries, are seen as key to balancing intermittent renewables.

• AI and advanced analytics are being deployed to optimize operations, predict failures, and enhance reliability.

Regulatory, supply chain, and policy challenges

• Permitting delays and regulatory uncertainty are major impediments to timely capacity additions and technology upgrades.

• Supply chain constraints and the need for continuous, predictable policy (rather than stop-and-go incentives) are highlighted.

• U.S. energy policy is dynamic, requiring flexible investment strategies and software adaptable to changing fuel mixes.

• Localization of manufacturing, especially in wind, is expanding in response to policy incentives and tariffs.

• The permitting process often lags behind technology, leading to outdated solutions being implemented.