AI data center boom boosts manufacturers

The surge in AI-driven data center construction is creating a significant tailwind for U.S. manufacturers, from electrical equipment makers like Generac and Siemens to suppliers of bearings, hoses, and construction materials. Generac is investing $250 million to expand production of data-center generators, with a $1.6 billion order backlog and plans to add 1,000 workers. Siemens is investing over $200 million in new plants in Georgia and Texas. Timken Company and Southeastern Hose report increased demand, with the latter tripling revenue. U.S. factory employment rose by 5,000 in July, and manufacturing activity hit a four-year high, though the mood among producers remains cautious amid fears of a bubble. Wood Mackenzie projects the U.S. data center electrical equipment market will double from $33 billion in 2025 to $66 billion by 2030. Some manufacturers are imposing 20% price increases on existing orders, while others sign multi-year agreements to mitigate risk. The boom is uneven, with softness in home generators and consumer goods, and concerns about tariffs and sustainability persist.