From CNBC · Annie Palmer · · 1m 10s
Amazon bets $340M on Generac for data center power
Amazon secures warrants to buy Generac stock as AI data centers demand massive backup power supplies.
In brief
Amazon secures warrants to buy Generac stock as AI data centers demand massive backup power supplies. Amazon is using warrant deals with suppliers to secure critical infrastructure for its AI-driven data center expansion. Originally reported by CNBC.
Amazon locks in Generac power deal
Amazon obtained warrants to buy up to $340 million worth of Generac stock, sending shares soaring over 40%. The deal includes backup power generators for Amazon's data centers.
“Amazon was granted warrants to purchase up to $340 million worth of Generac stock, sending shares of the backup power provider soaring more than 40%.”
Nearly 3% stake in Generac
The warrants allow Amazon to acquire up to 1.69 million Generac shares at $200.93 each, representing almost 3% of the company's outstanding shares.
Massive generator orders ahead
Generac will deliver backup power generators worth $2.4 billion to Amazon in 2027 and 2028, with about 308,000 warrant shares vesting immediately.
Part of Amazon's supplier strategy
Amazon frequently takes warrants and stakes in suppliers. Last week it secured $4 billion in Qualcomm warrants, and previously invested in Astera Labs, Plug Power, and others.
Fueling the AI data center boom
Amazon Web Services is rapidly expanding data center capacity to meet AI demand. It signed a $38 billion OpenAI deal and opened an $11 billion Anthropic campus.
In short
Amazon is using warrant deals with suppliers to secure critical infrastructure for its AI-driven data center expansion.
