Generac Holdings has signed a long-term agreement to supply backup generators for Amazon's data centers, according to The Motley Fool. The agreement was signed on June 24, but Amazon was only identified as the customer in an SEC filing this week.
Initial deliveries under the agreement total $2.4 billion, covering generator shipments in 2027 and 2028. On top of that, additional purchases could total as much as $8 billion as Amazon continues building out AI data center capacity.
As part of the agreement, Amazon received a warrant to acquire up to 1.69 million shares of Generac stock at $200.93 per share. More than 300,000 of those shares vest immediately, with the rest vesting in tranches tied to Amazon's purchases of backup generators through 2033.
Generac shares rose about 18% on September 17 to close at $207.23, while Amazon shares gained about 2%.