$8 Billion Amazon Pact Supercharges Generac’s Data Center Business
Stock jumps as Wisconsin manufacturer becomes long-term backup power supplier for AWS sites worldwide.
A Generac manufacturing plant Tuesday, April 14, 2026, in Beaver Dam, Wis. Angela Major/WPR
Waukesha-based Generac has entered into a long-term agreement with Amazon to provide up to $8 billion worth of backup generators for the tech giant’s data centers.
Generac disclosed the deal in a filing with the U.S. Securities and Exchange Commission on Wednesday. Under the agreement, Generac is expected to deliver $2.4 billion worth of generators to Amazon in 2027 and 2028.
Generac CEO Aaron Jagdfeld said the agreement establishes Generac as a “long-term partner for the supply of industrial backup generators to Amazon” and demonstrates the industry’s growth.
“It provides visibility to our multi-year growth expectations and our ongoing investments in vertically integrated large megawatt generator manufacturing capacity,” Jagdfeld said in a statement. “This is a significant milestone for Generac and positions us to capture this generational growth opportunity.”
The deal allows Amazon to acquire up to nearly 1.7 million shares of Generac stock for roughly $200 per share, the SEC filing states. Amazon immediately received the right to buy more than 300,000 shares. The remaining shares will vest over time as Generac receives payments and supplies backup power generators under the agreement.
Spokespeople for Amazon did not immediately respond to a request for comment.
Amazon Web Services has 287 operational data centers and 200 planned data centers across 22 countries, according to Data Center Map, an industry research tool.
News of the deal sent Generac’s stock price surging Wednesday from roughly $175 per share to nearly $250 per share. It was down to roughly $208 per share as of noon Thursday.
Data centers have been an important sales driver for Generac in recent years, helping drive the growth of the company’s commercial and industrial business.
The company has said a new manufacturing plant in Beaver Dam, expanded production operations in Oshkosh and plans for another new plant in Sussex have been part of a strategy to meet demand in that segment.
The commercial and industrial segment’s net sales increased by 29 percent in the second quarter of this year, hitting $556 million compared to $431 million last year.
“Sales growth for the segment was primarily driven by ramping revenue from products sold to the global data center market,” said Generac Chief Financial Officer York Ragen during the company’s second quarter earnings call in July.
On the call, Jagdfeld told investors the company expected to see nearly $450 million in data center-related revenue this year, up from previous projections.
He said the company had a backlog of $1.6 billion worth of products sold to the data center market, not including a new agreement with a large data center customer the company signed in June.
“The significant growth in our data center backlog with both hyperscale and non-hyperscale customers provides further confidence in our ability to serve this massive and still rapidly growing market,” he said.
To address growing demand for industrial scale generators, Jagdfeld said the company ramped up production at its existing manufacturing plants and sped up efforts to build a new plant in Sussex.
He said the Sussex plant is on track to begin production this year, ahead of the company’s initial target.
Generac employs more than 4,800 people across 11 locations in Wisconsin, including seven manufacturing facilities, a company spokesperson said via email.
Generac enters into $8B deal with Amazon to supply generators for data centers was originally published by Wisconsin Public Radio.
