Generac Jumps 40% After Amazon Wins Warrants in $2.4 Billion Data Center Power Deal
Updated
Updated · CNBC · Sep 16
Generac Jumps 40% After Amazon Wins Warrants in $2.4 Billion Data Center Power Deal
1 articles · Updated · CNBC · Sep 16
Summary
Generac shares surged more than 40% in extended trading after the company disclosed a deal to supply Amazon backup generators for data centers.
Amazon received warrants to buy up to 1.69 million Generac shares at $200.93 each—about $340 million and nearly 3% of the company—with roughly 308,000 shares vesting immediately.
The filing said initial generator deliveries are expected to total $2.4 billion in 2027 and 2028, while remaining warrant tranches vest as Amazon makes payments for the equipment.
The agreement could ultimately be worth as much as $8 billion and extends Amazon's pattern of taking equity-linked stakes in suppliers as AWS races to expand capacity for AI-driven compute demand.
It follows a Qualcomm agreement last week tied to Amazon's custom AI chips, underscoring how the cloud leader is locking in infrastructure across its data-center supply chain.