As artificial intelligence (AI) reshapes the data center landscape, power resiliency is being tested like never before. With enormous new facilities coming online and operators exploring alternatives to diesel, the backup power market is at an inflection point.

In this episode of the Data Center Frontier Show, we sit down with Ricardo Navarro, Vice President of Global Solutions at Generac Power Systems, to discuss how the company is positioning itself as a major player in the data center ecosystem.

Diesel Still Reigns — For Now

Navarro begins by addressing the foundational question: why diesel remains the primary backup power choice for hyperscale and AI workloads.

The answer, he explains, comes down to density, responsiveness, and reliability. Diesel engines respond instantly to the fluctuating loads that are common in AI training clusters, and fuel can be stored directly on-site. While natural gas is gaining traction as a bridging and utility-support solution, true redundancy requires dual pipelines — a level of infrastructure not yet common in data center deployments.

That said, Navarro is clear that the story doesn’t end with diesel. He sees a future where natural gas, paired with batteries, becomes a cost-effective and environmentally attractive option. Hybrid systems, combined with demand response and grid participation programs, could give operators new tools for balancing reliability and sustainability.

“Natural gas might not be the right solution right now, but definitely it will be in the future,” Navarro notes.

Scaling Fast to Meet Hyperscaler Demands

The conversation also explores how hyperscalers are shaping requirements. With campuses needing hundreds of generators, customers are asking not just about product performance, but about scale, lead times, and support.

Generac is addressing that demand by delivering open sets in as little as 30 to 35 weeks — about a third of the wait time from traditional OEMs. That speed-to-deployment advantage has driven significant new interest in Generac across the hyperscale sector.

From Generators to Energy Technology

Equally important is Generac’s shift toward digital tools and predictive services. Over the past decade, the company has invested in acquisitions such as Deep Sea Electronics, Blue Pillar, and Off Grid Energy, expanding its expertise in controls, telemetry, and microgrid integration.

Today, Generac is layering advanced sensors, machine learning, and AI-driven analytics onto its equipment fleet, enabling predictive failure detection, condition-based maintenance, and smarter load orchestration. This evolution, Navarro explains, represents Generac’s transformation “from being just a generator manufacturer to being an energy technology company.”

What’s Next for Generac

Looking ahead, the company is putting real capital behind its ambitions. Generac recently completed a $130 million facility in Beaver Dam, Wisconsin, designed to expand production capacity and meet surging demand from data center customers. With firm domestic and international orders already in place, Navarro says the company is determined “to be in the driver’s seat” as AI accelerates the need for scalable, resilient, and flexible backup power.

For data center leaders, this episode provides a clear look into how backup power strategies are evolving — and how one of the industry’s largest players is preparing for the next wave of energy and infrastructure challenges.