Generac Sparks on $8 Billion Amazon Data Center Deal

Generac Holdings Inc. (NYSE:GNRC) has seen its stock price surge nearly 20% to $208.48 after announcing a major deal with Amazon.com Inc. (NASDAQ:AMZN). The energy technology company will provide industrial backup generators for Amazon's global data center infrastructure, with initial deliveries totaling $2.4 billion across 2027 and 2028.

The long-term supply agreement has the potential to reach $8 billion over its lifespan, marking a significant expansion of Generac's role in backup power for large computing facilities. This deal is particularly noteworthy as it represents a shift away from Generac's traditional focus on home and business backup generators towards data centers, which are becoming increasingly important due to growing cloud and AI workloads.

As part of the agreement, Generac issued Amazon.com NV Investment Holdings, an Amazon subsidiary, a warrant to buy up to 1.69 million Generac shares at $200.9266 each. The stock had already seen significant gains in recent days, having risen 41% over the past 30 days.