Overview
- Generac disclosed the agreement in an SEC filing Wednesday that names Amazon Data Services as the counterparty and schedules $2.4 billion of generator deliveries in 2027 and 2028.
- Generac issued warrants allowing Amazon to buy up to 1.69 million shares at about $200.93 each, with roughly 308,000 shares vesting immediately and the remaining tranches tied to cumulative purchase milestones through 2033.
- The filing says the contract could expand to as much as $8 billion in total payments if Amazon hits the purchase thresholds that trigger full warrant vesting.
- Investors reacted sharply, sending Generac shares up roughly one‑third to over 40% in premarket and after‑hours trading, and analysts issued mixed updates and new price targets.
- The deal strengthens Generac’s growing data‑center business — which already had about $1.6 billion of backlog and counted for a rising share of sales — and highlights rising demand for large-scale power infrastructure as data centers expand for AI workloads.