Amazon Commits $8 Billion to Backup Power for Data Centers

Amazon has entered into an $8 billion deal to acquire backup power for its data centers from Generac, a generator firm. The long-term supply agreement requires Generac to deliver $2.4 billion in backup generators each of the next two years.

The deal includes a warrant that allows Amazon to acquire nearly 1.7 million Generac shares at almost $201 per share. This move is seen as expanding Generac's data center business, which it has been working on expanding this year.

Generac's rivals, such as Cummins and Caterpillar, have seen their order backlogs and revenue from transactions with data center companies nearly double in the past year.