GNRC · 10-Q · 2026Q2 · Full report

Grid Reliability and Power Demand

GENERAC HOLDINGS INC. · 2026-08-04 · Importance 29 · Surprise 24

Generac expects aging and under-invested electrical infrastructure, renewable-generation intermittency, artificial-intelligence data-center demand, North American re-industrialization, and broader electrification to create increasing power supply-demand imbalances. The North American Electric Reliability Corporation has identified significant portions of the United States and Canada as having high or elevated resource-adequacy shortfall risk during 2025-2029. The company expects utility supply shortfalls, rolling-blackout risks, and preventative utility shutoffs—particularly in the western United States to reduce wildfire risk—to increase awareness and demand for backup-power solutions. Generac also expects higher power prices to support demand for on-site generation, storage, and energy-management products.

Key facts

• Generac believes AI-driven data center buildout will create significant power requirements that could drive further grid instability and higher power prices. source