Generac’s $8 Billion Agreement with Amazon
On April 14, 2026, Waukesha-based Generac announced a long-term agreement with Amazon to supply backup generators for the tech giant’s data centers, potentially worth up to $8 billion. This partnership is set to deliver $2.4 billion worth of generators in 2027 and 2028.
Key Details
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CEO Statement: Generac’s CEO, Aaron Jagdfeld, highlighted that this deal cements Generac’s role as a long-term partner for Amazon and showcases significant growth in the industry.
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Stock Options: The agreement includes provisions for Amazon to acquire nearly 1.7 million shares of Generac at around $200 per share, with over 300,000 shares available immediately and others vesting over time as Generac fulfills its obligations.
Industry Impact
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Generac’s stock surged from approximately $175 to nearly $250 after the announcement, settling at around $208 shortly after.
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The deal is expected to bolster Generac’s commercial and industrial sector, which has seen a 29% sales increase in the second quarter compared to last year, driven largely by sales to the data center market.
Strategic Developments
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Generac is expanding its manufacturing capabilities with a new plant in Beaver Dam, an increase in production in Oshkosh, and plans for another facility in Sussex to meet rising demand.
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The company currently employs over 4,800 individuals across 11 locations in Wisconsin.
Conclusion
The collaboration between Generac and Amazon signals significant potential for growth in the data center market, positioning Generac as a key player in industrial backup solutions. This partnership not only enhances Generac’s market visibility but also underscores the evolving demands of tech infrastructure.
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