Amazon Signs Up to $8 Billion Backup Generator Deal With Generac

Amazon has entered into a long-term supply agreement valued at up to $8 billion with Generac Holdings to secure backup power generators for its expanding cloud and artificial intelligence data centers. Initial deliveries under the deal will total roughly $2.4 billion across 2027 and 2028. An Amazon subsidiary received warrants to acquire up to 1,693,745 shares of Generac common stock at $200.93 per share, with vesting tied to cumulative payments reaching $8 billion. Amazon aims to double its data center power capacity by year-end 2027 as annual capital expenditures approach $220 billion.