New Generac generators can run on vegetable oil – They could be used at data centers
- Generac Power Systems is launching a new line of backup generators for data centers in the U.S. that can run on diesel or biofuel.
- The generators, manufactured in Oshkosh, Wisconsin, will provide emergency power during grid outages, supporting approximately 90% of a data center’s power needs.
- While biofuel offers a cleaner energy source, its higher cost remains a barrier to widespread adoption.
- Generac, expanding its focus on data centers, aims to leverage its domestic manufacturing for quicker delivery compared to foreign competitors.
Waukesha-based Generac Power Systems is launching a new line of backup generators for data centers that can run on diesel fuel or biofuel made from vegetable oil.
The generators, already available in Europe and Asia, will be made in Oshkosh for U.S. data centers that need them for emergency power when the electric grid is down.
Data centers house thousands of computers, in one or more buildings, linked to the outside world by fiber optic cables. They enable most everyday online activities, including social media, streaming video, banking, ChatGPT and much more in the growing field of artificial intelligence.
Data centers require massive amounts of electricity, in some cases enough to power several hundred thousand homes. They employ backup power systems to keep the most important functions operating during outages.
Ricardo Navarro, senior vice president and general manager of Generac’s telecom and data centers division, said:
The large backup generators will make sure that all ‘critical loads’ are covered.
“Traditionally, critical loads like life safety and information technology are 100% secured, versus ‘non-critical’ loads like lighting, that might be backed up partially or not at all,”
He added,
As a rule of thumb, I would say that approximately 90% of the total power requirements of a data center are backed up by emergency standby generators,
With refueling, backup generators will run for extended periods. Generac’s new data-center units, like other diesels, are equipped to run on fuel synthesized from vegetable oil.
Biofuel is a cleaner alternative to diesel
Hydrotreated vegetable oil is made from food waste such as cooking oil residues and edible fats. It’s processed into fuel with hydrogen under high temperature and pressure.
HVO, as it’s called, is a cleaner-burning fuel.
John Imes, cofounder and director of Wisconsin Environmental Initiative, a Madison-based nonprofit, said:
In general, we support the use of lower-carbon alternatives like hydrotreated vegetable oil (HVO) for backup generation at data centers,
Imes said,
These fuels can significantly reduce lifecycle greenhouse gas emissions—up to 90% compared to conventional diesel—and offer a cleaner, more climate-aligned option for standby power,
He added,
That said, cost remains a major barrier.
“HVO can be two to four times more expensive than ultra-low sulfur diesel, depending on the region and supply chain. Without strong incentives or mandates, this cost differential may limit broader adoption—especially at scale across new and existing data center sites,”
Generac is more focused on data centers
Generac, founded in 1959, has decades of experience manufacturing backup generators for residential and industrial use. Say the name Generac, and most people immediately think of generators used for emergency power at home, in businesses, hospitals or construction sites.
However, the company’s products now include energy storage systems and energy management equipment. It operates in 150 countries and has manufacturing plants on four continents. Up to around 20% of its sales are now outside the United States.
To lessen risks in any one country, Generac has expanded its manufacturing and supply chain to Taiwan, Vietnam, Japan and other places. It has a plant in Mexico as well as extensive manufacturing in the United States.
The company returned to Wisconsin the production of a critically important generator component, an alternator, that was made in China for about 20 years. The move afforded management more control over the work and rekindled knowledge of the product design.
With growing challenges of an aging power grid, increasingly severe weather, and rising energy demands, Generac has expanded its focus on commercial and industrial markets, including data centers.
Navarro said,
One of the company’s strengths is it can produce and deliver large generators to U.S. data centers much quicker than some of its foreign competitors,
The new generators, about 26 feet in length and weighing 60,150 pounds, cost around $1.5 million to $2 million. The generators will be made at Generac’s plant in Oshkosh. In order to make room for the production, some work from that plant will be moved to the company’s plant in Beaver Dam.
Navarro said,
We are trying to maximize local manufacturing,
Data centers are booming
Data centers are one of the world’s fastest growing markets for energy use, and by extension, backup generators.
Microsoft recently confirmed it was building a data center in Kenosha in addition to the $3.3 billion center it has under construction in Mount Pleasant, in Racine County.
Wisconsin is one of 16 states under consideration for part of a $500 billion investment in artificial intelligence infrastructure and data centers, according to OpenAI, one of the project’s backers.
Last week, Bloomberg Business News reported that Facebook’s parent, Meta, plans to spend nearly $1 billion on the development of a data center in Beaver Dam, underscoring its investments in AI and cloud infrastructure.
We Energies has proposed a special electric rate aimed at data centers including the Microsoft center under construction in Mount Pleasant and a proposed facility in Port Washington.
The rate is meant to ensure that other ratepayers are not saddled with costs associated with building power plants and electric infrastructure necessary for power-hungry data centers, according to the state’s largest utility. grid is down.
READ the latest news shaping the biofuels market at Biofuels Central
New Generac generators can run on vegetable oil – They could be used at data centers, source
