Amazon Invests Heavily in Generac for Data Center Power
Amazon has made a significant investment in Generac, a leading provider of backup power solutions. The tech giant was granted warrants to purchase up to $340 million worth of stock in Generac, which boosted the company's shares by over 40% during after-hours trading.
The warrants enable Amazon to acquire up to 1.69 million shares at a price of $200.93 each, potentially totaling an investment value of around $8 billion. This partnership will see Generac supply backup power generators to Amazon for its data centers, with initial deliveries expected to reach $2.4 billion in 2027 and 2028.
This move represents nearly 3% of Generac's outstanding shares, a significant stake for Amazon given the company's market capitalization stands at approximately $10.3 billion as of the market close.