Generac (NYSE: GNRC) Powers Amazon Data Centers with Landmark Backup Generator Deal

• Generac (NYSE: GNRC) secured a significant long-term agreement with Amazon (NASDAQ: AMZN) to supply backup generators for its data centers, supporting growing AI and cloud infrastructure needs.
• Analyst firm Cantor Fitzgerald maintained an "Overweight" rating for Generac (NYSE: GNRC), citing the Amazon deal as a key driver for future stock performance.
• The deal includes warrants allowing Amazon to buy up to 1.69 million Generac shares at $200.93 each, while Amazon’s generator purchases could reach up to $8.00 billion over time.

Generac (NYSE: GNRC) is a leading provider of power generation solutions, designing and manufacturing essential backup power systems for homes, businesses, and industrial customers. With a market capitalization of approximately $10.31 billion, the company operates in a market that provides critical power infrastructure for various industries, including the rapidly growing data center sector.

On September 16, 2026, analyst firm Cantor Fitzgerald confirmed its "Overweight" rating for Generac (NYSE: GNRC) when the stock was priced at $175.11. As highlighted by TheFly, the firm views Generac's recent agreement with Amazon (NASDAQ: AMZN) as its "most important data center" news. This reflects optimism around Generac’s growing role in AI-related power infrastructure.

Generac secured a long-term agreement to supply backup generators for Amazon's data centers, which are crucial for supporting expanding AI and cloud infrastructure. As reported by Reuters, initial deliveries for 2027 and 2028 are expected to total around $2.40 billion, establishing Generac as a key supplier for large-scale data center power needs.

The market reacted strongly to the news, with Generac (NYSE: GNRC) shares climbing more than 30%. The deal also includes warrants, giving an Amazon investment subsidiary the right to buy up to 1.69 million Generac shares at $200.93 each.

About 307,954 shares vested immediately, while the remaining warrant shares will vest in tranches tied to Amazon’s generator purchases. If the full warrant is exercised, Amazon could buy roughly $340.00 million of Generac stock. Separately, Amazon’s aggregate generator purchases under the agreement could reach up to $8.00 billion, creating a major long-term revenue opportunity for Generac.