Generac lands new data center deal as sector drives improved sales outlook, stock price
Generac has secured a new agreement to supply backup generators to a leading hyperscale data center operator and plans to open a new factory in Sussex, Wisconsin, to meet growing demand. This, alongside similar growth for Modine Manufacturing, highlights the significant impact of the data center construction boom on Wisconsin-based suppliers.
The demand for data center construction is significantly boosting the financial outlook and stock prices for Wisconsin-based companies like Generac. Generac, headquartered in Waukesha, recently announced a major agreement with an unnamed hyperscale data center operator to supply industrial-scale backup generators, following a rigorous qualification process.
Generac's CEO Aaron Jagdfeld reported a 12 percent increase in net sales for the first quarter, with a 28 percent surge in the Commercial and Industrial segment primarily driven by the data center market. The company has consequently raised its full-year sales outlook, anticipating continued strength from the digital economy.
To accommodate the escalating demand, Generac is on track to open a new factory in Sussex, Wisconsin, later this year, which is expected to create over 100 jobs and expand its capacity for large data center customers.
Racine-based Modine Manufacturing is also experiencing substantial benefits from the data center boom. The company, which opened a new plant in Franklin last year for data center cooling systems, reported record-high sales of $3.2 billion in its 2026 fiscal year. Modine CEO Neil Brinker announced an agreement to supply over $4 billion in data center cooling products between 2027 and 2029, even as data center developments have become increasingly unpopular across the state.