Generac plans to spend $250 million by the end of next year to equip multiple factories to produce larger generators for data centers, where its order backlog has reached $1.6 billion. The Waukesha, Wisconsin-based company expects to add about 1,000 workers, increasing its headcount by 10%. CEO Aaron Jagdfeld said the key question is how long the data-center build-out will continue, while arguing that wider AI adoption could create a virtuous circle of further demand. The boom is also supporting makers of cooling systems, transformers, construction machinery, cables, pipes, cement, prefab metal walls and engineered steel bearings. U.S. factories added 5,000 jobs in July, bringing the year's total to 31,000, reversing 113,000 manufacturing job losses last year. Separate measures from the Institute for Supply Management and the Federal Reserve showed manufacturing activity or output at its highest level in more than four years in July, although the ISM survey indicated that sentiment remained weak across much of the sector. 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 limiting expansion because of bubble concerns, while others are using multiyear customer agreements and penalties to share the risk. Generac's residential-generator business remains soft amid weakness in housing and high food and gasoline prices.