Generac Holdings Inc. (GNRC) has secured a long-term supply agreement with Amazon (AMZN), bolstering its position in the data center infrastructure market. The deal, disclosed in a regulatory filing, entails Generac supplying backup power generators to Amazon data centers, with expected deliveries totaling $2.4 billion between 2027 and 2028. In premarket trading, Generac’s shares rose by 34.5% following the announcement.
As part of the agreement, Generac issued warrants to Amazon.com NV Investment Holdings LLC for up to 1,693,745 shares of common stock at an exercise price of $200.9266 per share, with 307,954 shares vesting immediately. The remaining shares will vest in tranches tied to Generac’s gross payments from Amazon, which could reach a total of $8 billion.
In the second quarter of 2026, Generac’s data center revenues exceeded $100 million, contributing to a 29% year-over-year increase in its Commercial & Industrial segment. The company reported a backlog of $1.6 billion as of July 2026, with significant orders received in the prior 90 days, highlighting growing demand for its products.
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