Sep. 17 at 2:17 AM
Generac shares surged more than 30% late Wednesday after the power-generator maker announced a deal worth up to
$8 billion with Amazon to supply backup generators for data centers, strengthening its exposure to the rapidly expanding AI infrastructure market.
The agreement includes initial deliveries of backup-power generators valued at
$2.4 billion in 2027 and 2028, with additional purchases potentially bringing the total value to
$8 billion. Generac also said the deal includes warrants allowing an Amazon subsidiary to purchase Generac shares through 2033.
The deal marks a major expansion for Generac, a roughly
$10 billion company known for residential and industrial generators, as data-center operators face growing power demands from AI workloads and expanding computing capacity. Reliable backup power has become increasingly important as operators seek to avoid disruptions at large AI facilities.
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