00:00Amazon just made an $8 billion bet on keeping its data centers powered.
00:04And it shows how strained the U.S. electric grid has become.
00:07The company signed a long-term deal with Generac,
00:10agreeing to buy $2.4 billion worth of backup generators every year for two years,
00:15while taking a warrant to purchase about 1.7 million Generac shares.
00:20It's part of a bigger industry shift.
00:22AI data center operators are increasingly bringing their own on-site power
00:26because the public grid can't keep up with demand.
00:30Generac's stock jumped as high as $239 a share before settling around $205.
00:35Rivals Cummins and Caterpillar have seen their own data center order backlogs nearly double over the past year.
00:42Experts say natural gas generators paired with battery storage
00:45are quickly becoming the new standard for American AI infrastructure.
00:49Disclosure. This video contains stock footage and content created or enhanced using AI-assisted tools.
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