Generac surges 34% premarket on seven-year Amazon data center generator deal

Generac shares rose 34% in New York premarket trading. If the gain holds through the close, it would mark the largest single-day advance since 2010. Generac disclosed a long-term agreement with Amazon that includes a power generation spending arrangement of up to USD 8 billion. Generac announced a multi-year agreement to supply backup generators for Amazon data centers and to issue Amazon warrants allowing it to buy up to 1.69 million GNRC shares at USD 200.93 each.

The warrants will vest as Amazon's cumulative generator purchases increase, corresponding to up to USD 8 billion in procurement spending, with about 18% vested at signing. Initial deliveries are planned for 2027 and 2028, totaling USD 2.4 billion, or an average of USD 1.2 billion a year. Under the warrant agreement, Amazon can receive all the warrants only if its cumulative diesel generator purchases ultimately reach USD 8 billion. Generac management has announced plans to triple its large generator production capacity by August 2027.