Deliveries of $2.4 billion are expected in 2027-2028, and a warrant on nearly 1.7 million shares to be acquired in line with payments.
On 16 September 2026, Generac signed a firm agreement with Amazon to provide emergency generators for its data centres for up to $8 billion over several years. The first deliveries, estimated at 2.4 billion, are expected in 2027 and 2028.
The particularity of the agreement lies in its capital component. Generac issued to an investment entity of Amazon an underwriting note for a maximum of 1,693,745 common shares at an exercise price of $200,9266 per share, valid until September 16, 2033. A first tranche of 307,954 shares is acquired immediately; the balance is released in increments, as gross payments for generators are made. In other words, the more Amazon buys, the more it can raise its supplier's capital.
The market reacted strongly, with the Generac action jumping after the closing. The assembly is not isolated: several technological giants have in recent months concluded agreements backed by subscription warrants with suppliers of electrical equipment, to secure a supply chain powered by the electric demand of AI data centers.
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