Amazon Secures Generators from Generac in $8 Billion Deal

Generac Holdings Inc., a leading power equipment supplier, has secured an $8 billion contract to provide generators for Amazon's data centers. The company issued a warrant for a stake in itself as part of the agreement.

The deal highlights the growing demand for electricity in tech giants' facilities, driven by artificial intelligence and other high-power applications. Generac shares jumped as much as 45% in after-market trading on the news.

This is not an isolated example; Oracle took a similar stake in fuel-cell maker Bloom Energy earlier this year. The trend suggests that large corporations are turning to partnerships with power equipment suppliers to meet their increasing energy needs.