Generac has signed a long-term deal to supply backup generators to Amazon’s data centers. The agreement includes about $2.4 billion in deliveries over two years and could reach $8 billion overall. Amazon will also have the option to buy nearly 1.7 million Generac shares.
“It provides visibility to our multi-year growth expectations and our ongoing investments in vertically integrated large megawatt generator manufacturing capacity,” Jagdfeld added. “This is a significant milestone for Generac and positions us to capture this generational growth opportunity.”
Generac has expanded production to meet rising demand from the data center sector. In June, it signed a global supply agreement with an undisclosed hyperscale operator, though it is unclear whether this was Amazon. Founded in 1959, Generac manufactures generators, energy storage, and power management equipment for several markets. Last year, it launched five data center-focused generators ranging from 2.25MW to 3.25MW. Earlier this year, Generac acquired Enercon, a generator enclosure and switchgear manufacturer, to strengthen its data center business.
