Amazon Secures $8 Billion Generator Supply Deal with Generac
Generac Holdings has entered into a long-term supply agreement worth up to $8 billion with Amazon, under which the e-commerce giant will receive backup power generators for its data centers. As part of the deal, Amazon received warrants allowing it to purchase up to approximately 1.69 million shares at $200.93 each, potentially valued at around $340 million. Generac's stock surged over 40% in extended trading following the announcement. The agreement includes staged vesting of the remaining warrant shares tied to Amazon’s payments under the contract. Initial deliveries are expected to total $2.4 billion across 2027 and 2028, with full vesting contingent on reaching an aggregate payment threshold from Amazon. This deal aligns with a broader trend where Amazon has taken equity positions in key suppliers such as Qualcomm, Plug Power, ATSG, Astera Labs, and SpartanNash to secure critical infrastructure components. The partnership reflects growing demand for backup power solutions due to the energy-intensive nature of AI data centers. Energy consumption by these facilities increased 80% from 2020 to 2025, according to the International Energy Agency.
Topics: Amazon data centers Generac supply agreement warrants