Generac Signs $2.4 Billion Generator Deal with Amazon
Generac Holdings (NYSE:GNRC) has signed a long-term agreement to supply backup generators to Amazon for its data centers, valued at up to $10 billion over several years. The deal includes an initial commitment of $2.4 billion in deliveries by 2027 and 2028, with potential additional purchases reaching as high as $8 billion. As part of the agreement, Amazon received a warrant for 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 and cloud computing operations, which have seen significant revenue growth in recent quarters. Generac has been expanding its role as an AI infrastructure supplier for hyperscalers due to the critical need for reliable backup power in data centers. The company reported strong second-quarter results with 11% sales growth and raised its net income margin guidance. Amazon, which leads the global cloud computing market with a 28% share, is increasing capital expenditures as it expands AI services and chip manufacturing capabilities.
Topics: AI Infrastructure Amazon Backup Generators Data Centers Generac