Data Centre Boom Brings Windfall, Here's the List of Beneficiaries
The explosion in artificial intelligence (AI) usage is not only benefiting technology companies. The American manufacturing industry is also reaping profits because data centre construction requires a wide range of equipment and machinery in large quantities.
One company feeling the impact is Generac, a generator manufacturer based in Waukesha, Wisconsin. The company is pouring in US$250 million, or around Rp4.4 trillion, by the end of 2027 to strengthen several of its factories.
Generac will use the investment to produce larger-capacity generators specifically designed to meet data centre needs. Demand for these products has already surged sharply.
Currently, Generac’s backlog of generator orders for data centres has reached US$1.6 billion (Rp28 trillion). The company also plans to hire around 1,000 new workers, increasing its workforce by about 10%.
“The question on everyone’s mind is how long this construction will last,” said Generac CEO Aaron Jagdfeld, as quoted by Reuters on Thursday (20/8/2026).
The explosion in data centre construction is also flowing into various other manufacturing sectors. Producers of cooling systems, electrical transformers, and construction machinery are also enjoying a surge in demand.
The impact is even spreading to the supply chain. Companies that produce cables, pipes, cement, and large prefabricated metal walls for data centre buildings are also receiving additional orders.
Timken, a high-tech steel bearing manufacturer based in Ohio, is also seeing increased demand. Timken CEO Lucian Boldea said data centre construction is adding a new source of growth beyond demand from the defence and aerospace sectors.
“Data centres require large buildings, roads, gas turbines — all of these require a number of our products,” Boldea said.
US Manufacturing Begins to Recover
The explosion in data centre construction is helping to lift the broader US manufacturing sector.
Data from the US Department of Labor shows manufacturing companies added 5,000 jobs in July. With that addition, the manufacturing sector has created 31,000 jobs so far this year.
That condition is a reversal from last year, when the manufacturing industry cut around 113,000 jobs.
US manufacturing activity is also showing improvement. The Institute for Supply Management (ISM) recorded that manufacturing activity in July reached its highest level in more than four years.
The Federal Reserve also reported that the manufacturing production index rose in July and reached its highest level in more than four years.
However, the recovery is not yet evenly distributed. The ISM survey shows sentiment among many producers remains gloomy. This means only certain sectors are enjoying the demand boom, while other parts of the manufacturing industry are still facing pressure.
That condition is even visible within Generac itself. Demand for household generators remains weak because the US housing market is under pressure.
High food and fuel prices are also making US consumers hold back on purchasing big-ticket items, including backup generators for homes.
Jagdfeld believes the situation could form a positive cycle. The more companies use AI, the greater their need for data centres. Ultimately, the increase in data centre construction will again boost demand for industrial equipment and machinery.
Concerns About an AI Bubble Bursting
However, behind the surge in demand, the manufacturing industry is also beginning to face a big question: will the data centre boom last long, or will it turn into a bubble?
Wood Mackenzie estimates the US market for electrical equipment related to data centres will double, from US$33 billion (Rp585 trillion) in 2025 to US$66 billion (Rp1,171 trillion) in 2030.
“Data centres are fundamentally different from any electrical load the electrical equipment industry has ever supported before,” said Wood Mackenzie senior analyst Ben Boucher.
A number of companies are even holding back expansion even though their products are in high demand. They worry that overly large capacity investments will become a burden if data centre construction suddenly slows.
Boucher said some manufacturers are even going back to customers who placed orders a year ago and raising prices by up to 20% in order to maintain delivery schedules.
Siemens is one company choosing to expand capacity. The German company announced an investment of more than US$200 million (Rp3.5 trillion) to build two new factories in Georgia and Texas.
Siemens is also trying to reduce risk by securing long-term contracts with customers. The strategy helps the company share risk if demand targets are not met.
“If targets are not met, there are very large penalties, worth millions of dollars, which help us share the risk,” said Siemens Electrical Products North America President Barry Powell.