# 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.
- Title: Amazon bets $340M on Generac for data center power · CNBC
- Summary: 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…
- Keywords: amazon, generac, data centers, warrants, backup power, artificial intelligence, infrastructure, stock deal, aws, supplier agreements, business, finance
- Source: CNBC — https://cnbc.com/2026/09/16/amazon-obtains-right-to-buy-up-to-340m-of-generac-boosting-stock-.html
- Author: Annie Palmer
- Published: 2026-09-16T21:02:35+00:00
- Read time: 1 min
- Topics: amazon, generac, data centers, warrants, backup power, artificial intelligence, infrastructure, stock deal, aws, supplier agreements, business, finance
## 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.
## Key takeaway

Amazon is using warrant deals with suppliers to secure critical infrastructure for its AI-driven data center expansion.