Amazon secures $340M Generac warrants for data center backup power
Amazon has entered a strategic partnership with Generac, the backup power specialist, to secure reliable energy infrastructure for its expanding data center network. Under the terms of the deal, Generac issued warrants allowing Amazon to purchase up to 1.69 million shares at a fixed price of $200.93, representing a potential equity stake worth approximately $8 billion. This financial arrangement…
Key points
- Amazon received warrants for 1.69 million Generac shares, valued at up to $8 billion.
- Generac will supply $2.4 billion in backup generators to Amazon data centers by 2028.
- Generac shares jumped over 40% following the announcement of the equity and supply deal.
The announcement triggered a significant market reaction, with Generac’s stock price surging more than 40% in extended trading. The warrants represent nearly 3% of Generac’s outstanding shares, signaling a deepening corporate alliance between the cloud giant and the power equipment manufacturer. This move highlights Amazon’s aggressive strategy to diversify its supply chain and ensure energy resilience for its AI-driven infrastructure.
This deal follows a similar arrangement Amazon struck with Qualcomm last week, where it also received warrants for custom AI chips. By linking equity ownership to hardware procurement, Amazon is leveraging its market position to secure critical components while providing Generac with substantial long-term revenue visibility and a major corporate shareholder.
Amazon obtains right to buy stock in Generac, boosting power company's share price by over 40%
CNBC Technology · 16 September 2026
An aerial view of an Amazon Web Services Data Center known as US East 1 in Ashburn, Virginia, U.S., October 20, 2025.
Jonathan Ernst | Reuters
Amazon was granted warrants to purchase up to $340 million worth of Generac stock, sending shares of the backup power provider soaring more than 40% in extended trading on Wednesday.
As part of the agreement, Generac said in a securities filing that it issued warrants to Amazon to acquire up to 1.69 million shares in the company at $200.93 a piece for a total investment that could be worth as much as $8 billion.
Generac will supply Amazon with backup power generators for its data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028, the filing states.
About 308,000 warrant shares vested immediately and the remaining tranches vest contingent upon payments for the generators.
The warrants are equivalent to almost 3% of outstanding shares in Generac, which has a market cap of about $10.3 billion, as of Wednesday's close.
It marks the latest infrastructure deal for Amazon, which is the cloud market leader. Last week, Amazon struck a deal with Qualcomm to use its custom artificial intelligence chips, and got warrants to acquire as much as $4 billion in Qualcomm stock.
This text was published by CNBC Technology and written by Annie Palmer. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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