LAFAYETTE, Ind. (WOWO) — Heavy equipment giant Caterpillar is making a major move in Indiana—announcing a $725 million investment to expand its large engine facility in Lafayette. The project is aimed at meeting growing global demand fueled by AI technologies, data centers, and increased energy infrastructure needs.

Caterpillar says the Lafayette expansion will boost production capacity and modernize its operations to stay ahead of rising construction and energy market demand worldwide.

In tandem with the expansion, Indiana will be one of the first states to benefit from Caterpillar’s new $100 million workforce development pledge. Up to $5 million is being committed to training programs across the state, helping workers develop the skills needed to support new manufacturing technologies.

Caterpillar currently employs more than 51,000 people in the U.S. and reports a 75% increase in exports since 2016—driven in part by global infrastructure projects and digital transformation.