Generac Shares Soar 45% on $8 Billion Amazon Data Center Generator Deal

Generac shares jumped as much as 45% after the company announced a long-term deal to supply Amazon's data centers with up to $8 billion worth of backup generators — one of the largest single orders in the company's history.

Under the agreement, the Waukesha, Wisconsin-based generator maker is set to deliver $2.4 billion worth of equipment to Amazon in 2027 and 2028, with the rest of the $8 billion order following in later years. As part of the arrangement, Generac issued Amazon warrants to purchase up to 1,693,745 shares of its common stock at $200.93 per share — a stake that could be worth as much as $340 million if fully exercised.

About 308,000 of those warrant shares became exercisable immediately upon signing, with the rest unlocking in stages tied to how much Amazon actually ends up purchasing. The warrants remain exercisable through September 2033.

The order is driven by the same force reshaping a lot of corporate spending right now: the electricity demands of artificial intelligence. Data centers running AI workloads draw enormous, constant power, and backup generation is a core part of keeping them online. The deal follows a pattern other tech giants have used recently — striking warrant-linked supply agreements with power equipment makers to lock in capacity as AI-driven electricity demand outpaces what utilities can reliably guarantee.

Generac's stock move was immediate and steep, jumping as much as 45% in after-hours trading on the news before settling into a still-substantial gain. For a company whose business has historically leaned on storm-driven demand for home standby generators, an $8 billion industrial order from one of the world's largest companies marks a significant shift in its customer base.