Amazon Invests Big in Generac Amid Growing Cloud Computing Demand

Generac Holdings Inc., the US-based generator maker, has entered into a long-term supply agreement with Amazon.com to provide backup power generators for its artificial intelligence (AI) data centers.

The deal is expected to be worth up to $8 billion, with initial deliveries projected at $2.4 billion in 2027 and 2028. Generac earned $4.2 billion in revenue in 2025.

As part of the agreement, Amazon received a warrant to purchase up to 1,693,745 shares of Generac's stock at an exercise price of $200.9266 per share, totaling over $340 million.