Amazon Secures $8B Deal with Generac for On-Site Power Generation
Amazon has made a significant move to secure power for its data centers by partnering with Generac Holdings Inc. (GNRC) in an $8 billion deal that could transform the company from a consumer storm hedge into an enterprise energy anchor.
The agreement, which has a ceiling of up to $8 billion, will provide Amazon's cloud computing business with reliable on-site power generation through Generac's behind-the-meter systems. This move comes as regional grid operators struggle to supply power at the speed modern technology demands, causing data centers to wait years for access to the commercial grid.
The deal, which has a multi-year equipment pipeline with a ceiling reaching up to $8 billion by September 16, 2033, includes a significant upfront order of $2.4 billion in power generation hardware across 2027 and 2028. This represents an immediate lift of about 28% over baseline sales for Generac.
Generac's modular multi-megawatt systems can run on natural gas, low-sulfur diesel, or bi-fuel configurations and pair with integrated microgrid controls from its Deep Sea Electronics unit to run multiple engines in parallel as a unified power plant. The company has expanded its commercial and industrial engineering capabilities over the years.