The mega-deal with Amazon boosts the generator manufacturer by about 25%

Generac Holdings reports a long-term supply agreement with Amazon to provide generators for its data centers. The stock jumps about 25% at the opening of trading on Wall Street. Initial deliveries are expected to generate approximately $2.4 billion over the next two years, with a total potential of up to $8 billion.

Shares of Generac Holdings (GNRC) surged about 25% at the opening of trading on Wall Street, following the announcement of a long-term supply agreement with Amazon. Under the agreement, Generac will supply backup generators for the tech giant's data centers. The deal comes amid rapid growth in the data center sector, driven by increasing demand for computing and artificial intelligence infrastructure. Generac, which specializes in power generation and backup systems, has expanded its operations in this field in recent years. According to the report, initial deliveries are expected to generate revenues of approximately $2.4 billion during 2027 and 2028. The total purchase volume could reach up to $8 billion, but this amount does not constitute a commitment by Amazon to purchases of this scale, but is tied to an incentive mechanism based on deal performance.