Amazon Locked $2.4 Billion of Generac Generators as AI Data Centers Scramble for Power

Amazon just locked up $2.4 billion of backup generators while AI data centers fight over power.

Generac Holdings filed a long-term agreement to supply the machines for Amazon data centers, with initial deliveries expected to total about $2.4 billion in 2027 and 2028, Reuters reported. The deal is a supply agreement plus a stock warrant, not cash Amazon has already spent.

Generac issued a warrant to Amazon.com NV Investment Holdings to acquire up to 1.69 million Generac shares at $200.93 per share. About 307,954 shares vested immediately. Remaining shares vest in tranches tied to Amazon purchases of backup generators, up to $8 billion in aggregate payments.

The warrant is exercisable through September 2033 and represents nearly 3 percent of Generac outstanding shares. Generac shares surged more than 40 percent in extended trading.

The $2.4 billion figure is expected initial deliveries for 2027 and 2028. The $8 billion figure is the warrant's purchase ceiling, not a completed buy. Amazon has previously received similar warrants from suppliers tied to AI and cloud infrastructure, including hydrogen producer Plug Power and air cargo contractor ATSG, in the same family as Marvell's volume-linked Google warrant.

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