Generac Strikes $8 Billion Supply Deal with Amazon for Data Centers, Sending Shares Up 45%
Generac has signed a contract worth up to $8 billion with Amazon to supply power generators for its data centers, including $2.4 billion in deliveries in 2027 and 2028, driving Generac's stock to jump 45% in after-hours trading.
Generac announced the signing of a massive supply contract with Amazon worth a total of up to $8 billion, aimed at equipping the e-commerce giant's data centers with power generation systems, according to Bloomberg.
The first phase of the deal includes $2.4 billion worth of deliveries during 2027 and 2028, a clear indication of Amazon's accelerated timeline for expanding its computing infrastructure for cloud services and artificial intelligence workloads.
Generac's stock received an extraordinary boost of 45% in after-hours trading, marking one of the largest daily gains in the company's history, as the deal reshapes its growth prospects as a strategic supplier of AI infrastructure.
This deal reflects a growing trend among major cloud service providers toward securing reliable backup power sources amid concerns over the power grid's ability to meet the growing demand from next-generation data centers.
What do these terms mean?
- Backup Power Generators: On-site electrical generation systems operated during power grid outages or deficits, considered an absolute necessity for data centers requiring continuous operation.
- Data Centers: Massive facilities housing thousands of servers that power cloud services and AI systems, consuming immense amounts of electricity.
- After-Hours Trading: Stock trading conducted outside official stock exchange trading hours, reflecting investors' immediate reactions to breaking news.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
