Updated
Updated · CNBC · Sep 17
Generac Soars 19% on $2.4 Billion Amazon Data Center Generator Deal
Updated
Updated · CNBC · Sep 17

Generac Soars 19% on $2.4 Billion Amazon Data Center Generator Deal

3 articles · Updated · CNBC · Sep 17

Summary

  • Generac jumped 19% in midday trading after landing an Amazon contract to supply backup generators for data centers, extending gains after the deal surfaced late Tuesday.
  • Initial deliveries are slated at $2.4 billion across 2027 and 2028, tying the order directly to Amazon’s expanding data center power needs.
  • Amazon also received the right to buy up to $340 million of Generac stock, while Amazon shares rose 1.3%.
  • The agreement adds to Amazon’s broader AI infrastructure buildout, where reliable backup power has become a critical constraint for new data center capacity.

Insights

Why is Amazon quietly locking up billions in traditional diesel generators while publicly touting its carbon-free AI future?
Could a sudden shortage of backup power become the unexpected bottleneck that finally slows down the global AI infrastructure race?