Generac Holdings Inc. (NYSE:GNRC) jumped 19.1% to $208.48 by late Thursday morning, pulling back modestly from an opening spike of 27.8% that had the stock poised for its best session ever.

The catalyst for the move is a long-term supply agreement to provide industrial backup generators for Amazon.com Inc.’s (NASDAQ:AMZN) global data center infrastructure. Initial deliveries total $2.4 billion across 2027 and 2028, with purchases potentially reaching $8 billion over the life of the deal.

The agreement reprices Generac from a hurricane-season consumer name into AI infrastructure.

Backup power has become a binding constraint on data center buildouts, and Amazon just locked up years of capacity with one supplier.

The stock entered Thursday already up 41% over 30 days.

QUICK CONTEXT: Generac Lands Amazon Data-Center Power Deal

Generac disclosed on Sept. 16 that it entered a long-term supply arrangement tied to Amazon data centers, marking a major expansion of its role in backup power for large computing facilities.

Under the filing, Generac issued Amazon.com NV Investment Holdings, an Amazon subsidiary, a warrant to buy up to 1.69 million Generac shares at $200.9266 each. About 307,954 shares vested immediately, while the rest vest as Amazon-related payments for data-center backup generators rise, up to $8 billion.

The first deliveries under the arrangement are expected to total $2.4 billion in 2027 and 2028. Generac said the warrant can be exercised through Sept. 16, 2033, and is subject to standard adjustment provisions.

Generac is a Wisconsin-based energy technology company founded in 1959. Its products include power generation equipment, energy storage systems, energy management devices and other power products for residential, commercial, data center, telecom, rental and industrial markets.

The deal matters because Generac has traditionally been associated with home and business backup generators, but data centers are becoming a larger power-reliability market as cloud and AI workloads increase the need for resilient electricity infrastructure.

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