Generac Scores $8 Billion Deal With Amazon on Backup Generators
Generac Holdings (NYSE:GNRC), a leading manufacturer of backup generators for residential and commercial use, has secured an enormous contract with Amazon (NASDAQ:AMZN) worth up to $8 billion. According to a regulatory filing, Generac will supply backup power supplies for Amazon's data centers in 2027 and 2028, with initial deliveries valued at $2.4 billion.
The deal is expected to support Amazon's fast-growing artificial intelligence business, which has seen significant growth in recent quarters. With the largest cloud computing market share globally, Amazon's AI services business topped a $25 billion annualized run rate in the most recent quarter.
Générac's stock price surged 20% on Thursday following the announcement, with shares valued at over $200 per unit. The company had previously disclosed a deal with an undisclosed hyperscale data center company, securing $700 million in volume.