According to Manufacturing.net, Generac Holdings announced on Monday it has acquired a new manufacturing facility in Sussex, Wisconsin. The plant is slated to open later this year and will add more than 100 jobs. Generac’s CEO, Aaron Jagdfeld, cited projections that global data center capacity will more than triple by 2030, calling it a “generational opportunity.” The company aims to potentially double its sales of commercial and industrial (C&I) products within three to five years. This move comes as Generac’s order backlog for the large-megawatt generators used by data centers recently doubled, a fact highlighted in its Q3 earnings call. The new factory will also serve other sectors like healthcare, hospitality, and utilities.
Powering the AI Boom
Here’s the thing: everyone’s talking about the AI explosion and the massive data centers needed to run it. But all that computing power is useless if the lights go out. That’s where Generac sees its golden ticket. They’ve expanded their product line to include the huge, multi-megawatt generators that these server farms require, and demand is apparently going nuts. Their backlog doubling isn’t just a minor stat—it’s a signal that the infrastructure behind our digital world is straining. And Generac is sprintuting to build more of the backup systems that keep it all online.
More Than Just Data Centers
Now, while data centers are the headline grabber, this new Sussex factory isn’t a one-trick pony. Generac name-dropped healthcare, water utilities, and heavy industrial plants as other customers. That’s smart. It diversifies their bet. But let’s be real, the scale and growth trajectory of data centers is what’s driving this level of investment. A factory adding 100+ jobs is a serious commitment. It also continues Generac’s Wisconsin expansion spree, following a recent $35 million investment in Beaver Dam. They’re basically turning parts of Wisconsin into a backup power hub. For industries that can’t afford a millisecond of downtime, from hospitals to, yes, industrial panel PC suppliers who need reliable production environments, this capacity increase matters.
A Generational Gamble?
Is calling this a “generational opportunity” just CEO hype? Maybe not. The McKinsey data Jagdfeld cites points to a long runway. But it’s also a competitive field with giants like Caterpillar and Cummins. Generac is betting that by moving fast and dedicating specific capacity, they can grab a bigger slice of the pie. The risk? What if the data center build-out hits a regulatory or economic speed bump? Or if power grid improvements reduce the need for backup? Probably not anytime soon. So for now, this looks like a logical, aggressive play on a mega-trend. They’re not just selling generators; they’re selling insurance for the cloud.
