Generac Stock Soars on Amazon Data Center Deal Worth Up to $8 Billion

Generac Holdings (NYSE: GNRC) stock saw an explosive surge on September 17, reaching intraday lows in the $220s after a long-term deal with Amazon to supply backup generators for its data centers. The agreement is worth up to $8 billion, but the actual revenue locked in is just $2.4 billion across 2027 and 2028.

The deal includes a warrant that allows Amazon to buy up to 1.69 million shares of Generac stock at an exercise price of $200.9266, potentially worth around $340 million. The vast majority of these warrant shares will vest as Amazon makes generator payments, with full vesting requiring the $8 billion in aggregate purchases.

This is not Generac's first data-center win, as it has already signed two earlier, undisclosed hyperscale agreements that have lifted its data-center backlog to roughly $1.6 billion. The company has been expanding manufacturing capacity aggressively and plans to triple output to meet the demand it's now signing.