Generac CEO: 'Amazing' how quickly backlog is growing for data centers

Core Viewpoint - The company is experiencing significant growth in its data center business, driven by increasing demand for backup power solutions due to the rise of AI and power shortages [3][12][20]. Company Insights - The company has a backlog of $300 million in orders and anticipates doubling its commercial and industrial (CNI) business from $1.5 billion to $3 billion in the next 3 to 5 years [3][20]. - The company has been in the generator business for 65 years, primarily known for residential products, but is now expanding into larger industrial generators [5][6]. - The company is ramping up production at a new facility in Wisconsin to meet global demand, with shipments already occurring in Australia [8][9]. Industry Context - The demand for power is expected to increase significantly, with AI projected to add 100 gigawatts of new demand over the next five years, equivalent to the power needs of 20 New York City-sized populations [12]. - The residential generator market is growing, with 7% of U.S. households now owning a standby generator, although price increases of 20% over the last few years are impacting consumer purchasing decisions [14][15]. - The company’s products are primarily for emergency backup power, addressing the growing issue of power outages caused by insufficient supply rather than just weather-related events [10][16]. Competitive Landscape - Competitors like Caterpillar and Cummins are also performing well in the generator market, indicating strong demand and supply constraints in the industry [19].