Amazon Grabs Generac Warrants for Backup Power Push

Amazon has made a significant move to secure its data centers by partnering with Generac, a leading provider of backup power generators. As part of this deal, Generac granted Amazon warrants covering up to 1.69 million shares at an exercise price of $200.93, valued at as much as $340 million.

The warrant grant equates to almost 3% of Generac's outstanding shares and represents a substantial investment in the company. In total, the deal could be worth up to $8 billion, with initial deliveries expected to total $2.4 billion across 2027 and 2028.

This partnership marks Amazon's continued effort to add data center capacity as AI compute needs spike. The tech giant has made similar deals in the past, including a recent agreement with Qualcomm to use custom AI chips, which included warrants to acquire up to $4 billion of Qualcomm stock.