Is there a reason it often seems like backup generators fail? Is it that we don't hear the success stories of all the times they don't fail? Just due to not being tested often?
It seems that it's pretty hard to get this right from the beginning too, every large datacenter ends up learning this again after they have a sequence of power incidents. That said, successful switch to generator for 1 hour and then generator failure is not a terrible outcome; if there was a notification, that's enough time to evacuate critical systems (assuming you have a plan).
Cloud vendors, of course, get to hide all that from you until something goes wrong.