Generac Announces $8 Billion Deal to Supply Generators for Amazon Data Centers
Generac (GNRC) announced a significant deal with Amazon (AMZN), valued at up to $8 billion, to supply backup generators for the tech giant's expanding data center network. The agreement includes immediate delivery of $2.4 billion worth of generators over two years and provides Generac with long-term demand visibility. As part of the transaction, Amazon also received a warrant allowing it to purchase 1.69 million shares at around $200 per share, offering potential upside for both companies. The news sent Generac's stock soaring more than 25% in recent trading and has driven its year-to-date gains above 60%. Analysts from William Blair highlighted the deal as a major win that validates Generac’s plans to expand manufacturing capacity. Amazon shares also rose slightly, adding about 2%, with both stocks performing well this year. The partnership underscores growing demand for reliable power solutions in data centers and positions Generac strongly within an expanding market segment.
Topics: Amazon Backup Power Data Centers Generac