Generac Signs $8bn Backup Generator Deal with Amazon for Data Center Portfolio

US generator manufacturer Generac has secured a long-term agreement with Amazon to supply backup generators for the hyperscaler's expanding data center portfolio, in a deal that underscores the intensifying demand for reliable onsite power infrastructure across the cloud computing sector.

The agreement, disclosed in a filing with the US Securities and Exchange Commission, carries an initial delivery value of approximately $2.4 billion over the next two years, with Generac projecting the total contract value could reach up to $8 billion over the longer term. The deal also includes a provision allowing Amazon to acquire up to nearly 1.7 million shares of Generac stock at approximately $200 per share. Amazon holds the option to purchase 300,000 shares immediately, with the remaining shares becoming available as Generac receives payments and delivers backup power generators under the terms of the agreement.

Generac CEO Aaron Jagdfeld described the deal as establishing the company as a "long-term partner for the supply of industrial backup generators to Amazon," adding that it "provides visibility to our multi-year growth expectations and our ongoing investments in vertically integrated large megawatt generator manufacturing capacity." He further characterized the agreement as "a significant milestone for Generac" that "positions us to capture this generational growth opportunity."

The agreement reflects Generac's broader strategic pivot toward the data center market, where demand for backup power solutions has surged alongside the rapid buildout of AI and cloud infrastructure. The company has significantly expanded production capacity in response, and in June signed a global supply agreement with an undisclosed hyperscale data center firm to supply backup generation infrastructure, though it remains unclear whether that earlier deal is connected to the Amazon contract.

Founded in 1959 and listed on the New York Stock Exchange, Generac provides power generation equipment, energy storage systems, energy management devices, and solutions serving residential, commercial, data center, telecom, rental, and industrial markets. The company operates manufacturing plants in Beaver Dam and Sussex, Wisconsin. Last year, Generac launched a new range of five generators spanning 2.25MW to 3.25MW specifically targeting the data center space, offering lead times of 50 to 60 weeks for fully packaged generators. Earlier this year, the company acquired Enercon, a maker of generator enclosures and switchgear, to further expand its data center capabilities.

The deal highlights the growing entanglement between hyperscale data center operators and power infrastructure suppliers as grid constraints and energy reliability concerns push major cloud providers to secure dedicated backup generation capacity. For Generac, the Amazon agreement provides a substantial anchor customer as it scales manufacturing to meet what it describes as a generational growth opportunity in the data center power market.