Generac Lands $8 Billion Deal with Amazon for Data Center Backup Power

Generac Holdings has signed a long-term agreement to supply backup power generators for Amazon's data centers. This deal, announced on September 16, is expected to be worth more than $8 billion across 2027 and 2028.

As part of the agreement, Generac issued a warrant to an Amazon subsidiary allowing it to acquire up to 1.69 million GNRC shares at $200.9266 per share. This totals $2.4 billion in initial deliveries for backup generators.

Generac's stock surged 40% after-hours on Wednesday following the announcement, and the company has already seen its shares increase by nearly 26% year-to-date. The agreement will see Generac supply backup power generators to Amazon's data centers, with an expected total value of $8 billion.