Amazon Inks $2.4 Billion Deal with Generac for Backup Data Center Generators

Generac Holdings has signed a long-term agreement with Amazon to supply backup generators for its data centers. The deal, worth $2.4 billion in initial deliveries by 2027 and 2028, could be worth up to $8 billion if Amazon exercises all its options.

The agreement is a significant win for Generac, which has been enjoying a strong year with shares up 52% and net sales jumping 11% in the second quarter. The company's commercial and industrial sales grew by 29% during that period.

The deal will support Amazon's fast-growing artificial intelligence business, which currently has the largest cloud computing market share and is expected to continue growing rapidly.