Cummins Inc. (NYSE:CMI) said Tuesday that its Power Generation business will supply battery energy storage systems for a large U.S. data center project.

The project will mark Cummins’ largest battery energy storage system, or BESS, deployment to date. It also expands the company’s role in powering AI-focused data centers.

AI Power Demand Drives Storage Need

The BESS will help the data center manage rapid changes in electricity demand from AI workloads. The system can quickly charge or discharge to reduce demand spikes. It can also improve power quality and stabilize the load at the utility connection point.

“This project is an important achievement for Cummins and reflects the confidence customers place in our ability to deliver innovative energy solutions at scale,” said Jenny Bush, president of Cummins’ Power Systems business.

Cummins launched its BESS solutions in May 2025. Since then, energy storage has become more important for data center developers. The industry faces grid constraints, longer interconnection queues and rising energy costs.

The systems can also work with diesel and natural gas generators or as part of a larger microgrid. In addition, they can provide temporary power while developers wait for permanent utility connections.

Cummins Targets Hyperscale Data Centers

Cummins’ BESS platform provides 5 megawatt-hours of nominal capacity. It uses lithium iron phosphate batteries with liquid cooling. The company designed the system for hyperscale and AI data center workloads.

“From bridge-to-grid applications and peak demand management to long-term resiliency, BESS gives data center operators greater flexibility to deploy, optimize and scale their power infrastructure,” Bush said.

Stock Performance

Cummins stock fell more than 3% Tuesday as investors pulled back from industrial and technology stocks.

The Industrials sector fell 1.1%, while the Nasdaq dropped 1.6% and the S&P 500 declined 0.6%. Cummins underperformed its sector, although the stock remains up nearly 55% over the past 12 months.

The stock was trading below its 20-day and 50-day moving averages but remained above its 200-day moving average.

Price Action

CMI Price Action: Cummins shares were down 3.16% at $620.92 at the time of publication Tuesday, according to Benzinga Pro data.

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