Generac Holdings Inc. and EPC Power Corp. announced a partnership to deliver integrated energy solutions for data‑center customers, combining Generac’s SBE Block battery systems, ARC Controller, and EPC Power’s M‑System inverters into a turnkey platform.
The integrated platform is designed to meet the power and reliability demands of AI‑driven workloads. By pairing Generac’s battery storage and control technology with EPC Power’s silicon‑carbide M‑System inverters, the solution offers ultra‑fast response, load smoothing, and grid‑support capabilities that enable continuous power during disturbances.
The partnership comes as Generac shifts its focus from residential generators to mission‑critical infrastructure. In Q4 2025, the company reported adjusted EPS of $1.61, missing estimates of $1.81, and net sales of $1.09 billion, below the $1.17 billion consensus. The quarter also saw a 12% year‑over‑year decline in net sales, driven by weaker residential demand, while commercial‑industrial sales grew, buoyed by data‑center orders. For the full year, net sales were $4.21 billion, down from $4.30 billion in 2024, and the company’s data‑center backlog stood at $300 million as of Q3 2025, rising to $400 million in the latest guidance.
Management highlighted the strategic importance of the partnership. EVP and President of Domestic C&I, Erik Wilde, said, "Data center customers don't just need more power — they need smarter, fully integrated energy solutions that perform seamlessly under extreme and rapidly changing conditions." Jim Fusaro, CEO of EPC Power, added, "Traditional systems cannot keep up with dynamic, high‑density AI workloads." Generac CEO Aaron Jagdfeld described the data‑center market as a "generational opportunity" and noted that "2026 will be an inflection point for Generac in this end market."
The announcement reinforced investors’ confidence in the company’s 2026 outlook. Management projected mid‑teens net sales growth, a 30% increase in commercial‑industrial product sales, and an adjusted EBITDA margin of 18.0‑19.0% versus 17.0% in 2025. The partnership, coupled with the acquisition of Enercon Engineering and a $500 million share‑repurchase program, signals a broader strategic pivot toward high‑density, AI‑driven data‑center solutions.
By integrating battery storage, control, and grid‑forming inverter technology, Generac and EPC Power are positioning themselves to capture a growing share of the data‑center market, where demand for resilient, high‑density power is expected to triple by 2030. The partnership represents a material step in Generac’s transition from a weather‑dependent residential business to a mission‑critical infrastructure provider.
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