Generac, Amazon strike $2.4 billion long-term generator supply deal

U.S. power equipment maker Generac has signed a long-term agreement to supply backup generators for Amazon data centers, with initial deliveries expected to total about $2.4 billion in 2027 and 2028, a regulatory filing showed on Wednesday.

Generac shares surged more than 40% in extended trading.

As part of the deal, Generac issued a warrant to Amazon.com NV Investment Holdings to acquire up to 1.69 million shares of the generator maker's stock at $200.93 per share.


About 307,954 shares vested immediately, while the remaining shares will vest in tranches tied to Amazon's purchases of backup generators, up to $8 billion in aggregate payments.

The warrant is exercisable through September 2033 and represents nearly 3% of Generac's outstanding shares.

Amazon has previously received warrants from suppliers tied to its AI and cloud infrastructure buildout, including hydrogen producer Plug Power and air cargo contractor ATSG.