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Generac's latest line of generators targets the growing demand for data centers

Generac Holdings, a power equipment manufacturer, announced on Tuesday it would launch new generators in North America with the largest capacity to date. The company said that the demand for this segment is increasing.

Electricity consumption is expected to reach record levels with the anticipated build-out of these centers.

The supply-demand ratio is also tightened by the retirement of older fossil fuel powered generators. New generation and power lines often have to wait in long queues before they can be connected to the grid.

Generac's North American generators, which range in capacity from 2.25 to 3.25 megawatts, represent an upgrade from the current 2 MW maximum, according to Ricardo Navarro. He is senior vice president and global manager of Generac's telecom and datacenter infrastructure section.

Navarro, in an interview, said that the company, which serves smaller data centers, has received commitments to purchase new generators this year and next.

Generac reported better than expected earnings in its fourth quarter 2024 due to increased power outages, and the severe weather impact of hurricanes Helene & Milton.

The Waukesha-based company's generators, which are permanently installed and automatically switched on whenever there is a power failure, usually sees an influx of new business during big storms.

Navarro said that due to the high demand of backup power, many companies are unable to provide as much and as fast as they need.

He said that with more than half of the company's factories located in the U.S. they have shorter lead-times. The flexible supply chain will be able navigate the challenges posed by the new tariffs. (Reporting from Seher Dareen, Bengaluru. Editing by Shailesh Kuber)

(source: Reuters)