Amazon, Generac Sign $2.4 Billion Data-Center-Generator Deal — Update
By Katherine Hamilton
Amazon signed a supply agreement to buy backup data-center power generators worth at least $2.4 billion from Generac.
Initial deliveries of the generators are expected to happen in 2027 and 2028, Generac said in a Wednesday filing with the Securities and Exchange Commission.
As part of the deal, Generac is giving Amazon a warrant to acquire up to 1.69 million shares for $200.93 apiece, putting the total value at roughly $340 million.
The warrant shares will fully vest if Amazon pays up to $8 billion for generators.
About 308,000 warrant shares will be vested immediately with the remaining balance vesting over the term of the warrant in multiple tranches contingent on aggregate gross payments for the generators.
Generac shares jumped 34% to $234.25 in after-hours trading. The company, which makes power-generation products, said in July that its profit and backlog were ballooning thanks to deals with AI hyperscalers.
As of July, it had added $1 billion in new orders since its previous quarterly report. Generac said at the time it had finalized product terms for nearly $700 million in 2027 volume from a major hyperscaler customer, while also signing a deal with a second hyperscaler whose volume wasn't yet included in the backlog.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
September 16, 2026 18:06 ET (22:06 GMT)
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