On Sept. 16, Generac (GNRC -2.92%) announced a multi-year deal with Amazon (AMZN -1.10%) for large-scale backup generators and power hardware to power Amazon Web Services data centers. Under the deal, Amazon will pay Generac $2.4 billion for equipment deliveries over the next two years, and orders could scale to $8 million through September 2033.
The deal comes as hyperscalers search high and low for power solutions for energy-hungry artificial intelligence data centers. Here’s what investors need to know about Generac’s massive deal with Amazon, and what it means for the company’s long-term outlook.
Image source: The Motley Fool.
Data centers need a massive amount of reliable power
Modern AI data centers require a massive amount of power. Traditional data centers run at 5 kilowatts (kW) to 15 kW per server rack, but next-generation data centers loaded with high-end graphics processing unit (GPU) clusters, such as Nvidia‘s H200 and Blackwell chips, draw 40 kW to 120 kW per rack….
https://www.fool.com/investing/2026/10/13/generac-entered-a-massive-deal-with-amazon-is-it-t/
