Generac targets data centres

Generac, traditionally known for providing backup generators for residential use, is now focusing on the data centre market, driven by the increasing energy demands of AI. The company is investing approximately $130 million in equipment and a new factory to produce larger backup generators specifically designed for large-scale computing facilities. Generac has recently made its first international shipments of these generators to data centre clients.

To address the rising power needs in hyperscale, colocation, enterprise, and edge data centres, Generac has launched five new generators ranging from 2.25 MW to 3.25 MW. These generators enhance scalability and reliability, and can be paralleled to match power demands, offering seamless integration with existing architectures. Generac's supply chain strategy allows for faster deployment and reduced downtime, providing competitive lead times of 50–60 weeks for fully packaged generators.

Generac's expansion into the data centre market comes at a crucial time, with AI workloads significantly increasing power density requirements. The new generators feature advanced cooling, redundancy, and low NOx emissions, aligning with stringent environmental regulations. This strategic move positions Generac to capitalise on the surge in data centre construction driven by AI computing demands.