# Generators, Steel, and Hoses: How the AI Data Center Boom Is Transforming American Manufacturing > Source: > Published: 2026-08-19 17:19:25+00:00 TL;DR — Key Takeaways - Generac is investing $250 million to expand production of industrial power systems for AI data centers, with a $1.6 billion backlog already in place. - The company plans to add about 1,000 workers as booming data center construction drives demand for generators and other electrical infrastructure. - Analysts expect global data center investment to approach $7 trillion by 2030, creating major opportunities for manufacturers of power, cooling, steel, cable and concrete. Generac Power Systems, long known for making the standby generators that keep household lights on during local blackouts, is entering the new frontier of artificial intelligence (AI). The Wisconsin-based manufacturer is pouring $250 million through next year into upgrading multiple facilities. The goal is to produce heavy-duty industrial power units designed specifically to keep massive AI data centers online. With an order backlog for these machines already climbing to $1.6 billion, Generac plans to add roughly 1,000 workers, a 10% boost to its global workforce. “The question on everybody’s mind is how long this build-out will go,” Generac CEO Aaron Jagdfeld said. Generac’s pivot highlights a broader shift sweeping the U.S. industrial landscape. Rapid enterprise and consumer adoption of AI, alongside cloud computing, streaming services, and e-commerce, has sparked an unprecedented global wave of data center construction. Global data center numbers have reached nearly 12,000 across 179 countries, with roughly 38% in the United States. Analysts project that global corporate investment in building and upgrading these facilities will approach $7 trillion by 2030, driving data center power usage to 219 gigawatts — enough electricity to power 180 million American homes. This digital surge is creating a massive industrial tailwind for manufacturers far removed from Silicon Valley, benefiting suppliers of electrical gear, cooling systems, structural steel, wire cables, and concrete. The broader manufacturing sector is benefiting. According to the Labor Department, domestic factories added 5,000 jobs in July, bringing the year-to-date total to 31,000 — reversing a slump from the previous year when factories cut 113,000 positions. Measures from the Institute for Supply Management (ISM) and the Federal Reserve both indicated factory output reached four-year highs in mid-year trading. Industry analysts estimate the U.S. electrical equipment market tied strictly to data centers will double from $33 billion to $66 billion by 2030. Industry giant Siemens recently announced a $200 million investment in new plants in Georgia and Texas to build specialized industrial equipment. Yet, despite record backlogs, many manufacturers remain wary of a potential market bubble. “Data centers are fundamentally different from any load the electrical equipment industry has supported before,” said Ben Boucher, a senior analyst at Wood Mackenzie. Boucher noted that severe supply constraints have forced suppliers to impose 20% price increases on year-old purchase orders just to maintain delivery timelines. To mitigate the risk of overexpansion, companies are taking precautions. Siemens now utilizes long-term agreements featuring multimillion-dollar cancellation penalties if build-out targets fall short. Meanwhile, smaller suppliers like Southeastern Hose, a family-run Georgia manufacturer that tripled its revenue to $15 million riding the data center wave, are careful not to abandon traditional customers like steel mills and petrochemical plants. “If this industry goes kaboom… there’s always that fear that it’ll domino the other way,” said Trey Travis, vice president of operations at Southeastern Hose. “So, we try to manage it. We take care of the people who have been loyal to us for 60 years.”