Caterpillar Will Raise Generator Prices

Caterpillar will raise prices on equipment and engines by 5 to 7 percent, the company said this morning in a filing with the Securities and Exchange Commission.

Caterpillar is a leading supplier of the diesel generators that provide backup power for data centers, allowing them to continue operating even during a loss of power from the local electric company. Caterpillar said the price hike was "in line with expected general economic conditions and industry factors."

The price hike comes on the heels of a similar announcement from Liebert, a leading provider of data center cooling and backup equipment. The demand for data center equipment is a key enabler of these price hikes. More to come shortly on equipment supply-demand issues.