3M expands Amazon data center partnership, shares gain
MMM•3M expanded its commercial relationship with Amazon and issued an Amazon subsidiary a warrant to buy up to 3.16 million 3M shares, worth more than $521 million. 3M shares rose more than 5% in extended trading.
1. Warrant terms
The warrant allows an Amazon subsidiary to buy up to 3.16 million 3M shares over seven years at $164.89 per share. About 85% of the shares will become available as Amazon buys optical connectivity and other data-center products from 3M, with that portion fully vesting once purchases reach $6 billion. The remaining 15% will vest when certain milestone-based conditions are met.
2. Data-center products
3M said the agreement expands its commercial relationship with Amazon as technology companies increase spending on data-center infrastructure. In July, Microsoft became the first hyperscaler to adopt 3M's Expanded Beam Optics technology in AI data centers.
