Yes, they are. Hitek builds those. The 2007 outage of 365 Main in SF, which took down many major web sites, was due to control problems with a set of ten of them.[1] Each unit had a motor/generator, a flywheel, and a Diesel engine on the same shaft. There's a free-wheeling clutch between the Diesel generator and the rest of the system, so the Diesel does not rotate when idle. The Diesel is started by its own starter motor, and when its RPM reaches that of the generator, the clutch engages and it starts powering the generator.
PG&E had a transformer fire which caused large voltage swings.
The flywheels kept the generators turning, and the ten Diesel engines started OK. Then outside power came back up, and after a time delay, the Diesels shut down. Then outside power failed again, and because of a timing incompatibility between the power control and engine control, some of the engines would not restart that soon. There was a minimum "off" time on the engine; it had to stop before it could be restarted.
The engines that did start were not enough to handle the load; they overloaded and their controllers shut them down, shutting down the whole data center.
[1] https://www.datacenterknowledge.com/archives/2007/07/24/gene...