Generac Ramps Up Capacity for Booming Data Center Demand

Generator manufacturer pilots projects with hyperscale data center operators, expands production to meet growing orders.

Published on Feb. 11, 2026

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Generac, a Wisconsin-based generator manufacturer, is piloting projects with two hyperscale data center operators and building up its production capacity to handle a significant increase in orders expected in 2027 and 2028. The company has increased its backlog of orders by $400 million as it prepares for potential 'significant volumes' from these hyperscale customers as well as other data center co-locators and developers. Generac is on track to reach $1 billion in domestic capacity by the end of this year, including through the acquisition of a new facility in Sussex.

Why it matters

The growth in data center demand is driving major investments by Generac to expand its production capabilities for large megawatt generators, which are critical infrastructure for powering these massive computing facilities. As data usage and cloud computing continue to surge, Generac is positioning itself to be a key supplier to the hyperscale data center operators that are leading this expansion.

The details

Generac is currently in a 'pilot phase' with two hyperscale data center operators, testing its products both in-house and in the field. The company has also made progress securing orders from additional data center co-locators and developers, increasing its backlog by $400 million. To meet this growing demand, Generac is adding significant production capacity, including a recently acquired facility in Sussex, Wisconsin. The company is on track to reach $1 billion in domestic capacity by the end of this year, but CEO Aaron Jagdfeld acknowledged that even this level of expansion may not be enough to handle the potential orders from the hyperscale customers.

  • Generac reported a 12% decrease in net sales for Q4 2025 compared to the prior year.
  • For the full year 2025, Generac's net sales decreased 2% to $4.2 billion.
  • Generac expects net sales growth in the mid-teens percent range for 2026.
  • Commercial and industrial sales are expected to increase 30% in 2026, while residential product sales are expected to increase approximately 10%.

The players

Generac

A Wisconsin-based generator manufacturer that is a key supplier of large megawatt generators for data centers.

Aaron Jagdfeld

The chief executive officer of Generac.

Allmand

A Nebraska-based company that designs and manufactures mobile power equipment, which Generac recently acquired to expand its commercial and industrial business.

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What they’re saying

“We're talking about a lot of product. It's difficult for me to get my head around. There's potential that the billion dollars of capacity we've put ourselves in position to be in by the end of the year would not be enough to handle the potential capacity that would be required if we are able to successfully land purchase orders for these hyperscale customers, because we also have co-locators.”

— Aaron Jagdfeld, Chief Executive Officer (biztimes.com)

“Although our fourth quarter results reflect a softer outage environment and lower shipments of home standby and portable generators, our momentum in the data center end market has further accelerated as we continue to develop our position as a key supplier to multiple hyperscale customers which are expected to add significant volumes to our backlog over the next several quarters.”

— Aaron Jagdfeld, Chief Executive Officer (biztimes.com)

What’s next

Generac is continuing to invest in expanding its production capacity, including the recent acquisition of a facility in Sussex, Wisconsin, to meet the expected surge in demand from hyperscale data center operators in the coming years.

The takeaway

Generac's strategic focus on the booming data center market, including piloting projects with hyperscale operators and aggressively ramping up its manufacturing capacity, positions the company well to capitalize on the rapid growth in cloud computing and the need for reliable backup power generation.