Generac Expands Capacity as AI Data Centers Drive Power Demand

The artificial-intelligence investment boom is spreading beyond chips and servers to the power systems needed to keep data centers running. Energy-intensive computing facilities require reliable primary and backup electricity, turning grid capacity and resilience into critical constraints. That shift is boosting demand for generators, distribution equipment and related services, positioning U.S. generator maker Generac as a beneficiary of expanding AI infrastructure spending.

Generac said in 2026 it would invest $250 million to expand production capacity as demand rises from data centers and other large power users. The company’s order backlog has reached $1.6 billion, providing visibility into future sales. As of August 2026, Generac shares had gained 54% for the year, reflecting investor expectations that sustained corporate spending on AI infrastructure will significantly enlarge the market for backup power and electrical equipment.