Generac Lands $2.4 Billion Generator Deal With Amazon

GNRC signed a long-term supply agreement with AMZN to provide backup generators for Amazon's data centers, with initial deliveries valued at $2.4 billion scheduled for 2027-2028. The deal includes potential additional purchases that could reach $8 billion through 2033. As part of the arrangement, AMZN received a warrant for up to 1.69 million GNRC shares.

The contract directly supports Amazon's expanding AI infrastructure requirements, positioning GNRC as a key supplier for the tech giant's growing power needs. GNRC stock surged 20% following the announcement, reflecting investor confidence in the company's ability to capture demand from the AI-driven data center buildout.

The warrant structure gives AMZN equity upside in GNRC while securing long-term supply, a sign of the strategic importance both companies place on the partnership. The 2027-2028 delivery timeline aligns with Amazon's anticipated data center expansion cycle.