Generac Secures $8 Billion Deal with Amazon for Data Center Power

Generac Holdings has secured a major supply agreement with Amazon worth up to $8 billion for backup power generators at data centers. This deal comes as Amazon's data center expansion accelerates, with revenue growth of 15.77% over the last twelve months.

The initial deliveries under this partnership are expected to total around $2.4 billion across 2027 and 2028, representing a significant initial commitment and expanding backlog by roughly $4 billion.

Stifel reiterates its Buy rating on Generac stock with a price target of $285 following the announcement. The firm notes that rising demand from data center customers likely leads to additional orders for Generac.