Amazon Locks in Generac as Data Center Generator Supplier

Generac, a Wisconsin-based company that specializes in backup generators, has entered into an $8 billion deal with Amazon to supply the tech giant's data centers. Under the agreement, Generac will deliver up to $2.4 billion worth of generators to Amazon in 2027 and 2028.

Generac CEO Aaron Jagdfeld described the deal as a 'significant milestone' for the company and noted that it establishes Generac as a long-term partner for the supply of industrial backup generators to Amazon.

The agreement also gives Amazon the right to buy up to nearly 1.7 million shares of Generac stock at around $200 per share, with the remaining shares vesting over time as Generac receives payments and supplies the generators.

Data centers have been a key growth driver for Generac in recent years, with the company's commercial and industrial segment seeing a 29% increase in net sales in the second quarter of this year, reaching $556 million.