Generac Signs $10.4 Billion Generator Deal with Amazon for Data Center Backup Power
Generac Holdings (GNRC) has signed a long-term agreement valued at up to $10.4 billion with Amazon, supplying backup generators for its data centers starting in 2027 and extending through 2033. The deal includes an initial commitment of $2.4 billion over the first two years, with potential additional purchases totaling as much as $8 billion. As part of the agreement, Amazon received a warrant to acquire up to 1.69 million shares of Generac stock at $200.93 per share. The partnership is expected to support Amazon's growing artificial intelligence business and its leadership in cloud computing. With AI workloads becoming increasingly critical for businesses worldwide, ensuring uninterrupted power supply has become a top priority for hyperscalers like Amazon. The deal highlights Generac’s expanding role as a key supplier of backup power solutions for data centers. Generac is investing to increase production capacity for large megawatt generators and raised its full-year net income margin guidance in response to the growing demand from major tech companies.
Topics: AI Infrastructure Amazon Backup Generators Data Centers Generac Holdings