Generac Signs $8 Billion Agreement with Amazon to Support Data Centers
Generac said about 308,000 shares vested immediately, while the rest depend on Amazon purchases tied to a long-term generator supply pact.
- On Wednesday, power equipment maker Generac signed a long-term agreement to supply backup generators for Amazon data centers, issuing warrants to acquire up to 1.69 million shares.
- Amazon has previously secured similar warrants from suppliers tied to its infrastructure buildout, including hydrogen producer Plug Power and air cargo contractor ATSG.
- Initial deliveries are expected to total $2.4 billion in 2027 and 2028, with aggregate payments potentially reaching up to $8 billion through future purchases.
- Amazon was granted warrants valued at up to $340 million, sending Generac shares soaring more than 40% in extended trading on Wednesday.
- About 307,954 warrant shares vested immediately, while remaining tranches vest contingent on generator purchases, with the warrant exercisable through September 2033.
31 Articles
31 Articles
Amazon Secures Warrant in Generac for Data Center Power as AI Demand Strains the Grid
Amazon struck a deal with Generac for up to $8 billion in backup generators for its data centers, securing a warrant for nearly 3% of the company. Initial deliveries total $2.4 billion in 2027-2028. The pact highlights power reliability as a critical chokepoint for AI infrastructure expansion.
Generac Surges 16% on $2.4B Amazon Data Center Generator Deal; Caterpillar Ticks Up, Cummins Sits Out the Rally
Amazon just handed Generac a contract that sent shares surging, but buried inside the deal is a warrant arrangement that could let the customer claw back the very gains it created. Here is what the peer group silence from Cummins reveals about who actually wins.
The backup power system provider Generac announced a long-term contract to provide generators for Amazon data processing centers. Exclusive material for subscribers. To have full access, access the material link and register.
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