Generac signs long-term Amazon data center generator deal

Generac signs long-term Amazon data center generator deal

Thu, September 17, 2026 at 5:04 PM GMT+3 1 min read

• AMZN +1.00%
• GNRC +0.10%

Generac Holdings Inc (NYSE:GNRC) signed a long-term agreement to supply backup generators for Amazon.com Inc (NASDAQ:AMZN) data centers, with initial deliveries expected to total about $2.4 billion in 2027 and 2028.

The US power equipment maker's shares surged nearly 18% in Thursday morning trading.

As part of the deal, Generac issued Amazon.com NV Investment Holdings a warrant to acquire up to 1.69 million shares in a regulatory filing Wednesday.

The warrant carries an exercise price of $200.93 per share and represents nearly 3% of Generac's outstanding shares.

About 308,000 shares vested immediately, while the remaining shares will vest in tranches tied to Amazon's purchases of backup generators.

Those purchase-linked tranches cover up to $8 billion in aggregate payments from Amazon under the arrangement.

The warrant remains exercisable through September 2033, extending beyond the initial deliveries expected over the two years.

Amazon has previously received supplier warrants tied to its AI and cloud infrastructure buildout, including from hydrogen producer Plug Power (NASDAQ:PLUG) and air cargo contractor ATSG.