Generac Soars on $8 Billion Amazon Deal

Generac Holdings shares surged over 40% in after-hours trading on Wednesday, following an announcement that the company will supply backup generators to Amazon's data centers. The agreement could be worth up to $8 billion and involves initial deliveries totaling about $2.4 billion in 2027 and 2028.

Generac issued a warrant to Amazon subsidiary to purchase up to 1.69 million shares at $200.9266 apiece, with around 307,954 shares vesting immediately. The remaining shares are linked to future generator purchases.

The deal highlights the growing need for reliable electricity and backup generation as Amazon expands its data center infrastructure to support cloud computing and AI workloads. Generac had previously reported a $1.6 billion data center backlog, identifying this area as a major long-term growth opportunity.