Generac Lands $8B Amazon Deal, Bolsters Data Center Business
Generac Holdings has secured a major partnership with Amazon, which includes an order valued at up to $8 billion. The initial commitment from Amazon totals $2.4 billion, and the deal improves backlog quality and duration for Generac's data center business.
According to Jefferies analyst Tanner James, the financing structure includes warrants to Amazon, which aligns interests for supply beyond the initial commitment. This likely protects margins, addressing investor concerns over data center terminal value.
Jefferies calculated that fiscal year 2028 implied consensus revenues to data centers could be more than $1.5 billion below reasonable expectations. The deal is a significant boost for Generac's data center business and should alleviate some of the company's valuation concerns.