Generac lands new data center deal as sector drives improved sales outlook

Wisconsin is developing at least 46 billion dollars worth of data centers. Waukesha based manufacturer Generac signed an agreement to provide backup generators for an unnamed hyperscale data center operator. Generac chief executive Aaron Jagdfeld told CNBC that the customer provided the company 650 million dollars for 2027 alone. Modine Manufacturing announced a 4 billion dollar contract to provide cooling systems for an unnamed data center customer through 2029. Three companies including Generac, Modine and Regal Rexnord completed more than 1 billion dollars in data center work as of March, reporter Tom Kertscher of Wisconsin Watch told WPR. Both Generac and Modine stock prices more than doubled since January. Kertscher said some of these companies have seen their stock prices go up quite a bit and data center business is a big part of it. Professor Dijo Alexander at UW Milwaukee said demand for Wisconsin suppliers is tied to the state position in the middle of the country for moving information from one coast to the other. He said proximity lets companies participate in discussions up front and expand into other regions. Kertscher said it remains to be seen if jobs created supplying components for data centers will last longer than short term construction jobs. Alexander said state leaders need to take a more proactive role in negotiating with hyperscalers instead of having negotiations take place on a community by community basis.