Generac invests $250 million to build data center generators
Generac plans to spend $250 million by the end of next year to equip several factories to build beefed-up generators for data centers, citing a $1.6 billion order backlog and plans to add about 1,000 workers. The surge in data center construction is boosting makers of cooling systems, transformers, cables, prefab walls and other suppliers, and is coinciding with a modest manufacturing rebound: U.S. factories added 5,000 jobs in July and activity indexes hit multi-year highs. At the same time, many producers remain cautious about a possible AI-driven bubble and are managing risk with contracts and price adjustments.
Data center demand is driving factory investment and hiring
Context
Companies are building more data centers because AI use is growing. That has raised orders for generators and electrical gear. Some firms may sign long contracts or raise prices if demand slips.
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