Data centers need large amounts of electricity and backup power to keep operations runningGenerac, the Wisconsin-based company known for its backup generators, is betting heavily on the data-center boom as demand for power equipment rises alongside the growth of artificial intelligence. According to a Reuters report, the company has a $1.6 billion order backlog for generators designed for data centers and plans to invest $250 million to expand its factories by the end of 2027. But the rapid growth has also raised questions about how long the AI-driven construction boom can continue. Generac CEO Aaron Jagdfeld summed up the uncertainty, saying, "The question on everybody's mind is how long this build-out will go."The Waukesha, Wisconsin-based company plans to upgrade multiple factories to manufacture more powerful generators for data centers. Generac also expects to add around 1,000 workers, increasing its workforce by about 10%.As mentioned, Generac has traditionally been known for home backup generators. However, the growing number of data centers being built to support AI services has opened up a new business opportunity for the company.AI data-center boom drives demand for generatorsData centers need large amounts of electricity and backup power to keep their operations running. As per the Reuters report, this has increased demand for generators, cooling systems, transformers and other electrical equipment.As quoted in the report, Aaron Jagdfeld said the growing use of AI could continue to drive the need for more data centers. At the same time, Generac's traditional home-generator business has remained under pressure as the housing market struggles and consumers face high costs.The wider data-center boom is also benefiting suppliers across the manufacturing industry. Lucian Boldea, CEO of steel bearing maker Timken, said data centers require large buildings, roads and gas turbines, creating demand for many different products."Those data centers need massive buildings, roads, gas turbines — that all requires some of our products," he said.Data-center equipment market could double by 2030As per the report, the demand could grow significantly in the coming years. Consultancy Wood Mackenzie projects that the US market for electrical equipment linked to data centers will increase from $33 billion in 2025 to $66 billion by 2030.However, manufacturers are also concerned about the possibility of an AI investment bubble.