Generac Holdings Inc. (NYSE: GNRC) shares are soaring in extended trading Thursday after the company announced a supply agreement with Amazon.com Inc. (NASDAQ: AMZN) for data center backup generators.

Generac Holdings stock is charging ahead with explosive momentum. Why is GNRC stock up today?

Generac Inks Supply Deal With Amazon

Generac and Amazon entered into a long-term supply agreement for up to $8 billion of backup power generators for Amazon data centers. Initial generator deliveries are expected to total $2.4 billion in 2027 and 2028.

The companies also entered into a transaction agreement for which Generac issues Amazon a warrant to acquire up to approximately 1.69 million shares of common stock at an exercise price of approximately $200.93.

GNRC Shares Surge After Hours

Generac shares were up 37.51% in after-hours, trading at $240.80 at the time of publication on Thursday, according to market data.