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Generac ramps generator production for data centers in $250 million build-out
The generator backlog for data-center equipment totals $1.6 billion, and Generac plans to add about 1,000 workers, a 10% headcount increase.
Generac is spending $250 million by the end of next year to expand multiple factories that will produce beefed-up generators aimed at data centers, setting up an industrial build-out tied to the broader U.S. data-center boom, according to Reuters.
The company reported a $1.6 billion order backlog for those machines and expects to hire about 1,000 workers, representing a 10% increase in headcount, as it tries to scale capacity for customers building out for AI workloads.
Reuters also noted that other sectors benefiting from the wave include cooling systems makers, electrical transformer producers, and construction machinery manufacturers, with demand flowing onward to suppliers of wire cables, pipes, cement, and prefab metal building components.
The article points to signs of a wider manufacturing lift, including U.S. factories adding 5,000 jobs in July for a year total of 31,000, and survey measures showing manufacturing activity at a more than four-year high, though it cautions that many producers remain gloomy as demand is concentrated in specific niches.