Generac Holdings Inc. announced the acquisition of a new manufacturing plant in Sussex, Wisconsin, on January 5, 2026, adding a dedicated facility for large‑scale backup power generators and related energy solutions. The new site is slated to open in the fourth quarter of 2026 and will create more than 100 manufacturing jobs, expanding the company’s production footprint beyond its existing plants in Beaver Dam and Oshkosh.
The expansion is part of Generac’s strategy to capture a larger share of the rapidly growing data‑center market. The company’s commercial‑industrial (C&I) segment grew 9% year‑over‑year to $358 million in Q3 2025, driven by strong demand for high‑megawatt generators that power data‑center and cloud‑computing facilities. In contrast, overall net sales fell 5% to $1.11 billion, reflecting a decline in residential and portable generator shipments amid a lower‑than‑seasonal power‑outage environment.
Generac’s CEO, Aaron Jagdfeld, described the expansion as a “generational opportunity” to double C&I sales over the next three to five years. The company’s backlog of large‑megawatt generators for data centers has already doubled to more than $300 million in the 90 days leading up to the Q3 2025 earnings call, indicating robust demand that the new facility is designed to meet.
The facility’s opening in Q4 2026 will allow Generac to increase capacity for mission‑critical power solutions while maintaining its residential product line. The company continues to invest in residential generators, but the new plant signals a strategic shift toward higher‑margin, higher‑volume C&I products that support AI, cloud computing, and other digital infrastructure trends.
Financially, the expansion comes at a time when Generac’s gross profit margin in Q3 2025 was 38.3%, down from 40.2% the prior year, largely due to higher input costs and the need to invest in new manufacturing capabilities. The company’s full‑year 2025 revenue guidance was revised to flat growth, reflecting the balance between rising C&I demand and headwinds in the residential segment.
Management emphasized that the new facility will enhance operational leverage and support the company’s long‑term growth strategy. By expanding production capacity for high‑megawatt generators, Generac aims to capture a larger share of the data‑center market, which is expected to grow as AI and cloud services demand more reliable backup power.
The announcement underscores Generac’s commitment to scaling its commercial‑industrial business while maintaining a diversified product portfolio. The new Sussex plant positions the company to meet the increasing demand for mission‑critical power solutions and to sustain its growth trajectory in a market driven by digital infrastructure expansion.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.