The Pulse
Amazon Ties Up to $8 Billion in Generac Data Center Power
Amazon and Generac signed a long-term agreement for backup generators serving Amazon data centers, with initial deliveries expected to total $2.4 billion in 2027 and 2028. The deal also gives an Amazon subsidiary a warrant for up to 1,693,7
AI.info Team ·
Amazon has agreed to buy up to $8 billion of backup power generators from Generac for its data centers, but the figure describes a payment ceiling tied to the companies’ commercial relationship—not cash already paid or a guaranteed order book. Generac disclosed the agreement in a Form 8-K filed on September 16, 2026, alongside a warrant giving an Amazon subsidiary the right to acquire up to 1,693,745 Generac shares.
The filing says initial deliveries are expected to total $2.4 billion across 2027 and 2028. Payments from Amazon and its affiliates for backup generators will determine when additional portions of the warrant vest, linking Amazon’s potential equity stake in Generac to the volume of equipment it ultimately buys. The company’s full filing is available through Generac’s investor-relations site.
The $8 Billion Figure Is a Payment Ceiling
Generac and Amazon entered into a transaction agreement dated September 16. Under its terms, Generac issued the warrant to Amazon.com NV Investment Holdings LLC, a wholly owned Amazon subsidiary. The warrant covers up to 1,693,745 shares at an exercise price of $200.9266 per share.
Of those shares, 307,954 vested immediately. The remaining shares vest in multiple tranches as Generac and its global affiliates receive aggregate gross payments, net of specified offsets, from Amazon and related entities for backup generators used at Amazon data centers. The vesting schedule can extend until those payments reach $8 billion.
The distinction matters. Generac’s filing does not state that Amazon has paid $8 billion, nor does it describe the entire amount as committed near-term revenue. It establishes a commercial framework in which future payments affect Amazon’s right to acquire additional Generac stock.
Amazon Gets a Warrant for 1.69 Million Shares
Amazon may exercise the warrant in whole or in part through September 16, 2033, subject to the vesting conditions and other provisions in the agreement. The subsidiary can use either a cash exercise or a cashless exercise, and the exercise price and share count can change under anti-dilution provisions.
Generac also granted registration rights covering the warrant shares. The filing says the securities were issued under an exemption from registration provided by Section 4(a)(2) of the Securities Act.
The arrangement gives Amazon a potential equity position without requiring the company to buy Generac shares immediately. At the same time, it gives Generac a financial incentive to deliver equipment and collect payments under the supply arrangement. The filing does not disclose the warrant’s total accounting value.
Generac Expects $2.4 Billion in Deliveries
The companies executed a long-term supply agreement on the same date as the warrant. Generac says initial backup-generator deliveries are expected to total $2.4 billion in 2027 and 2028, a figure that is separate from the larger payment threshold used for warrant vesting.
The agreement covers generators for Amazon data centers, but the filing does not identify the facilities, their locations, the number of generators involved, or the equipment specifications. It also does not disclose the expected profit from the deliveries or provide a timetable beyond the 2027 and 2028 initial-delivery window.
A transaction agreement included in the filing refers to a Global Purchase Agreement dated June 24, 2026, between Generac Power Systems and Amazon Data Services, as well as a Long Term Supply Addendum dated around September 16. The companies also refer to quarterly production agreements and purchase orders connected to those arrangements.
Redactions Leave Key Commercial Terms Unclear
Generac redacted portions of the warrant and transaction agreement, stating that the omitted information is not material and is private and confidential. Among the redacted provisions is the value of purchase orders or commitments described in the agreement as “Firm Orders.”
The public filing therefore confirms the structure and headline amounts without providing a complete view of pricing, production schedules, delivery locations, or the precise steps by which the warrant’s remaining shares vest. It also gives no executive commentary from either company.
What the filing does establish is a direct connection between Amazon’s data-center procurement and Generac’s equity capital. Amazon receives the possibility of acquiring Generac shares at a fixed exercise price, while Generac’s access to that commercial relationship expands with the amount of backup-power equipment Amazon and its affiliates purchase.