Amazon Secures Generac Deal Worth Up to $340 Million

Amazon has secured the right to buy up to $340 million in Generac stock through a data center power deal, the tech giant's latest effort to expand its infrastructure capacity. The agreement grants Amazon warrants to purchase up to 1.69 million shares of Generac at $200.93 each, with initial generator deliveries totaling $2.4 billion in 2027 and 2028.

The deal marks a significant investment by Amazon in backup power equipment maker Generac, which will supply the tech giant with generators for its data centers. The agreement also includes equity incentives for Amazon, mirroring its broader strategy of combining procurement with equity investments in areas tied to cloud expansion.

Ggenerac's shares surged over 40% in after-hours trading following the announcement, valuing the warrants at nearly $340 million or around 3% of Generac's market capitalization. This move underscores Amazon's growing focus on securing technology and infrastructure capacity as it expands its data center footprint.