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# Generac Sees Data Center Sales Topping $2 Billion In 2027, Path To Doubling Commercial Unit
- URL: https://www.bullished.co/generac-sees-data-center-sales-topping-2-billion-in-2027-path-to-doubling-commercial-unit-665632dd/
- Published: 2026-10-28T15:46:11.000Z
- Updated: 2026-10-28T15:46:11.000Z
- Description: CEO Aaron Jagdfeld pointed to a $4.5 billion backlog, an Amazon supply deal and a plan to triple capacity.
- Author: Matteo Parrino
- Tags: Earnings, GNRC, Industry: Industrials

[Generac](https://www.bullished.co/tag/gnrc/), which makes home standby generators and large commercial backup power equipment, expects 2027 revenue from products sold to data centers to "well exceed $2 billion," CEO Aaron Jagdfeld said on the company's third-quarter earnings call Wednesday. He said a [$4.5 billion data center backlog](https://seekingalpha.com/news/4658895-generac-rises-as-data-center-backlog-reaches-45b-earnings-beat?ref=bullished.co), nearly triple the level 90 days earlier, gives the company a path to double its commercial and industrial segment next year.

## The Amazon agreement and the backlog

Jagdfeld, who is president and chief executive, said initial deliveries under a new long-term supply agreement with Amazon are expected to total a combined $2.4 billion in 2027 and 2028\. Data center revenue for 2026 is now expected to be nearly $500 million, up from about $450 million previously expected.

The deal includes up to about 1.7 million warrant shares that vest as Amazon buys a total of $8 billion of backup generators over the seven-year term. Jagdfeld called that a "material incentive" for Amazon to keep buying from Generac.

The backlog is not all Amazon. Jagdfeld said almost $600 million of orders came from non-hyperscale customers and other hyperscalers in the last 90 days, and that more than half of the backlog is for 2027\. A first hyperscale customer he did not name is expected to account for about $700 million next year, and it has told Generac 2028 could be as large or larger if Generac executes.

## Tripling capacity, a $7 billion year

Asked by an analyst at Stephens how the ramp would unfold, Jagdfeld said he is thinking of roughly one-third of data center volume in the first half of 2027 and two-thirds in the second. He called doubling the commercial business next year "mind-blowing," noting he had once talked about three to five years.

He said doubling that business, combined with the framework laid out at the March investor day for the rest of the company, puts Generac at about a seven billion dollar clip for 2027 net sales.

The company is working to triple capacity. Jagdfeld said annual data center capacity should reach close to $4 billion by the second half of next year, up from roughly $1.25 billion at the end of this year. The new Sussex, Wisconsin plant began production at the end of the third quarter, and a packaging site in Belvidere, Illinois is expected online in early 2027\. With quoted lead times of 45 to 50 weeks, he said orders not received by the first quarter will be tough to fill in 2027.

## Quarter and outlook

Net sales rose 16% to a record $1.29 billion, with commercial and industrial sales up about 28% to $553 million and residential up about 9% to $744 million. Adjusted EBITDA was $256 million, or 19.8% of sales, against $193 million a year earlier. Free cash flow was $132 million.

Generic full-year guidance for sales growth was held, while the adjusted EBITDA margin range was raised to 20.5% to 21% from 20% to 21%. Full-year free cash flow is now expected at about $450 million. Generac shares traded at $190.74, down about 1.5%, in Wednesday trading.

Generac said it will discuss fourth-quarter and full-year results in mid-February.

### Sources

- [Generac says data center backlog hit $4.5 billion (GNRC:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4658895-generac-rises-as-data-center-backlog-reaches-45b-earnings-beat?ref=bullished.co) — seekingalpha.com
- [Generac Holdings (GNRC) Q3 Earnings Surpass Estimates](https://finance.yahoo.com/markets/stocks/articles/generac-holdings-gnrc-q3-earnings-105003451.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Generac to Report Q3 Earnings: Should Investors Hold or Fold?](https://finance.yahoo.com/markets/stocks/articles/generac-report-q3-earnings-investors-145700092.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Is Generac Holdings (GNRC) Below Fair Value Going Into Earnings?](https://finance.yahoo.com/markets/stocks/articles/generac-holdings-gnrc-below-fair-001609119.html?ref=bullished.co) — Yahoo Finance
- [Amazon Backup Power Deal Could Be A Turning Point For Generac Stock](https://sg.finance.yahoo.com/news/amazon-backup-power-deal-could-230921348.html?ref=bullished.co) — Yahoo Finance

### More on Generac Holdings

- [Generac CEO Says Data Center Buyers Without Guarantees Won't Get Built For, As Backlog Hits $4.5 Billion](https://www.bullished.co/generac-ceo-says-data-center-buyers-without-guarantees-wont-get-built-for-as-backlog-hits-2bc2d108/)
- [Generac's Data Center Backlog Reaches About $4.5 Billion As Third-Quarter Sales Hit A Record](https://www.bullished.co/generacs-data-center-backlog-reaches-about-4-5-billion-as-third-quarter-sales-hit-a-record-70b3ea51/)

[All Generac Holdings (GNRC) coverage →](https://www.bullished.co/tag/gnrc/)