Amazon Scoops Up Generac Warrants Worth $8 Billion Amid AI Data Center Push
Amazon has secured the right to purchase up to $340 million in stock of Generac, a power provider. The warrants allow Amazon to buy up to 1.69 million shares at $200.93 each for a total investment of as much as $8 billion. This deal comes after Amazon struck a similar agreement with Qualcomm last week.
Generac will supply backup power generators to Amazon's data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028. The warrants represent almost 3% of outstanding shares in Generac, which has a market capitalization of $10.33 billion. This deal is part of Amazon's efforts to build out its data center capacity to meet the surge in demand tied to the AI boom.
Amazon's stock has gained 42% over the past five years, while Generac's stock has declined 60% over the same period. The news of the deal has sent Generac's stock up 30% in premarket trading on September 17.