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

Reuters (Aatreyee Dasgupta, 16 September 2026) reported a Generac Holdings regulatory filing that sets out a long-term agreement to supply backup generators for Amazon data centers. Initial deliveries are expected to total about $2.4 billion in 2027 and 2028.

This is a long-term supply agreement plus a stock warrant, as described in that filing. It is not a completed $8 billion purchase, not a named megawatt count, and not a grid emergency declaration.

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. Reuters said 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 cash Amazon has already committed. Amazon has previously received similar warrants from suppliers tied to AI and cloud infrastructure, including hydrogen producer Plug Power and air cargo contractor ATSG.

Related Finpresso tape includes Marvell's volume-linked Google warrant, Dell raising its FY27 outlook on AI servers, and Oracle's $664 billion cloud backlog.

If you mark GNRC or buy backup power for an AI campus, model $2.4 billion as the 2027 and 2028 delivery expectation and treat the $8 billion warrant path as unearned until Amazon's purchase tranches actually vest.