US Factories Gain From Data Center Boom

The artificial intelligence data center boom is driving growth across US factory supply chains, lifting manufacturers of electrical equipment and industrial parts. While the surge is boosting factory output and jobs, some firms remain cautious about potential market risks.

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FILE PHOTO: A drone view of the Digital Realty data center in Oakland, California, U.S., July 18, 2026. REUTERS/Fred Greaves/File Photo

GENERAC HOLDINGS INC is spending $250M by late next year to equip multiple factories for data-center generators, backed by a $1.6B backlog. The artificial intelligence boom is rippling through industrial supply chains in the United States and Germany as factories scale production. This expansion provides a major growth driver for traditional manufacturing sectors facing soft consumer demand.

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