Terry Judge, CEO of Spokane Valley-based manufacturing company Hotstart Inc., says right now is the most exciting time of his career.

With Hotstart’s recent revenue growth and some service expansions, it’s easy to see why.

“We’re at an inflection point,” says Judge. “We’re about to experience really significant growth that I haven’t seen in any other company that I’ve worked for before.”

Indeed, Hotstart is projected to end its year with $93 million in revenue, he says. That’s up nearly 11% from $84 million last year, and even more than its revenue of $79 million in 2023. Beyond this year, Hotstart is expected to earn $120 million in annual revenue by 2028.

Much of that increase is due to the rise in artificial intelligence—and the data centers dedicated to it, he says.

“All indications are this is growth that’s going to continue for years ahead. AI is just getting started,” says Judge. “That consumes a lot of power and requires really big data centers, and a lot of generators to back up that power, which require a lot of our systems.”

Hotstart manufactures engine block heating systems and then sells them to Texas-based Caterpillar Inc., Indiana-based Cummins Inc., and London-based Rolls Royce. Those companies then build backup generators and sell them to their own customers, including AI-focused data centers. If data centers lose electricity, they can lose the information they’re storing, Judge explains.

Hotstart’s engine block heating system is an invaluable component within its clients’ backup generators, he says. The system ensures the backup generator is always ready to start up the instant a data center or other facility loses power. 

There are different types of data centers, says Judge. Enterprise centers, for example, support a single organization, such as a bank keeping a data center full of its clients’ information. Another type of center is the hyperscale data center. They store vast amounts of data for companies that want or need to keep their data uploaded to the cloud, says Judge. Massive tech companies, like Amazon, Apple, Google, and Meta, maintain those hyperscale centers.

Recently, the company received a large order from a hyperscale data center in Europe for a different service it offers—heat pump retrofitting, which can save companies up to 80% of their energy consumption per year, Judge contends.

Roughly three years ago, Hotstart acquired Florida-based Geo-Thermal Systems, which specialized in retrofitting heat pumps.

“We’ve barely scratched the surface of that growth,” Judge says.

GTS’s people were very experienced, says Judge, adding that Hotstart’s team felt those skills would mix well with the company’s production and manufacturing capabilities. Before the acquisition, common clients for GTS—now rebranded to Hotstart—included airports, hospitals, prisons, wastewater treatment facilities, and small data centers. Hotstart is working to scale those operations up.

“These hyperscale data centers that are big names in the industry are recognizing the value,” says Judge.

Hotstart also is working with four data centers in the Portland, Oregon, area to retrofit heat pumps for 41 systems. The data centers are expecting to save 1.3 gigawatt-hours per year, asserts Judge. That compares to 120 homes worth of power saved per year, he says.

The team at Hotstart is another reason this is one of the most exciting times of Judge's career, he says. The company consists of roughly 220 employees. About 190 work in the Spokane area.

“I’m just so proud of our team, and how much they’ve accomplished, how much we’ve accomplished over the last few years, and our future looks so bright,” Judge says.

Hotstart workers, says Judge, have grown through training, and the company has brought on consultants to help with growth. Additionally, a new chief revenue officer joined the company in August. Judge says the company’s culture seeks to encourage, support, and respect each other.

“When the people are rocking and rolling, that’s what makes things hum,” he says.

Established in 1942, Hotstart occupies 140,000 square feet at its headquarters at 5723 E. Alki, where it has been located since the late 1970s, says Judge. Two and a half years ago, it purchased Hotstart East, formerly the King Beverage building, at 6715 E. Mission. That building covers 90,000 square feet, half of which Hotstart is planning to use for production. The remaining 45,000 square feet will be leased out.

The company also operates locations in Chicago, Houston, the United Kingdom, Germany, and Japan.

Currently, Hotstart East is being leased back to Spokane Valley-based King Beverage Inc. Construction of a new $8 million King Beverage warehouse is underway. The facility will be about 200,000 square feet at 3520 E. Geiger, on the West Plains, as previously reported by the Journal. As of March, the facility is expected to be completed by Oct. 1, enabling operations out of that building in November.