Generac Announces Major Partnership with Amazon for AI Data Center Backup Power
Shares of Generac (NYSE: GNRC) surged on Thursday following the announcement of a significant partnership with Amazon.com (NASDAQ: AMZN). Under this long-term supply agreement, Amazon will purchase up to $8 billion worth of backup power generators from Generac over several years. Initial deliveries are expected to total $2.4 billion in 2027 and 2028, representing nearly half of the company's projected revenue for 2025. As part of the deal, Amazon received a warrant allowing it to purchase up to 1,693,745 shares at an exercise price of $200.92 per share, with over $340 million in potential value. Approximately 308,000 shares are already vested, while the remainder will vest as orders progress through 2033. The partnership is seen as a major endorsement for Generac's products and could open doors to additional contracts with other cloud computing companies.
Topics: AI data centers Amazon partnership backup power generators Generac