Generac Stock Surges on $2.4 Billion Amazon Data Center Generator Deal

Generac Holdings saw its stock surge in premarket trading on Thursday after announcing a multi-year agreement to supply backup generators to Amazon for its data centers. The deal, disclosed in a Securities and Exchange Commission filing on Wednesday evening, includes initial deliveries valued at $2.4 billion across 2027 and 2028. As part of the arrangement, Amazon received warrants to purchase up to 1.69 million Generac shares at approximately $201 each. The warrants vest incrementally as Amazon's cumulative spending on Generac generators reaches milestones up to a total of $8 billion, with full vesting running through 2033. Approximately 308,000 shares vested immediately upon signing. The agreement confirms Amazon as Generac's second hyperscale data center customer, a relationship previously referenced without naming the client. Generac's data center backlog had already reached about $1.6 billion by late July, and second-quarter commercial and industrial sales rose 29% to $556 million, driven partly by growing data center revenue. Analysts noted the deal could eventually unlock up to $8 billion in orders for Generac, well above the signed $2.