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Vertiv's Liquid Cooling Stack Gaining Adoption: Will the Tech Deliver?

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Key Takeaways

  • VRT expands liquid cooling for high-density AI data centers.
  • iGenius win features NVIDIA-optimized prefab modules.
  • Orders up 13%, backlog hits $7.9B in Q1 2025.

Vertiv (VRT - Free Report) is expanding liquid cooling solutions across its AI infrastructure portfolio to accelerate deployment and support large-scale data center growth. These advanced thermal systems, including heat rejection units and liquid distribution architecture, are being integrated into prefabricated modules, enabling faster rollout of high-density GPU environments.

Ongoing product innovation and deeper AI integration are emerging as key growth drivers. As AI workloads continue to scale, particularly in training and running AI models at the hyperscale level, Vertiv is addressing rising thermal complexity. As part of a large-scale deployment for Italy’s iGenius project, the company delivered prefabricated modules equipped with liquid cooling and power systems optimized for NVIDIA’s GB200 and GB300 NVL72 platforms. These builds reflect the company’s focus on next-generation thermal infrastructure designed to meet the needs of high-density AI workloads.

The advancements are strengthening momentum in modular deployments. Vertiv is scaling production of factory-integrated liquid cooling and working toward full USMCA qualification in Mexico to support regional demand. These capabilities help reduce lead times and improve rack-level energy efficiency for hyperscale AI infrastructure.

Adoption of Vertiv’s cooling stack is expanding across global AI programs, particularly among hyperscalers deploying next-gen GPU infrastructure. In first-quarter 2025, total orders increased 13% year over year while backlog increased to $7.9 billion, up 25% year over year. With differentiated cooling and heat rejection technologies and broader capacity, Vertiv is positioned to support long-term growth in AI infrastructure.

Vertiv Faces Stiff Competition

Vertiv’s AI infrastructure solutions face increasing competition from nVent Electric (NVT - Free Report) and TE Connectivity (TEL - Free Report) , both of which are expanding their offerings to support high-density, AI-driven data centre deployments.

nVent Electric is advancing its position with liquid cooling solutions, including coolant distribution units, rack manifolds, and rear-door heat exchangers designed for large-scale GPU environments. Its collaboration with NVIDIA on GB200 and NVL72 reference architectures positions nVent Electric to address the rising thermal complexity in hyperscale AI workloads.

TE Connectivity is gaining traction with high-speed interconnects and thermal components built for AI factory-scale infrastructure. Its expertise in power delivery, signal integrity, and connector density makes TE Connectivity a key player as AI deployments scale across enterprise and cloud.

Vertiv’s Share Price Performance, Valuation and Estimates

VRT’s shares have gained 11.9% year to date, while the broader Zacks Computer & Technology sector has returned 6.1% and the Zacks Computers - IT Services industry has plunged 7.2%.

VRT Performance

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Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 18.18X compared with the Computer and Technology sector’s 10.1X. VRT has a Value Score of D.

VRT Valuation

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The Zacks Consensus Estimate for second-quarter earnings is pegged at 82 cents per share, unchanged over the past 30 days, indicating 22.39% year-over-year growth.

The consensus mark for VRT’s 2025 earnings is pegged at $3.55 per share, which has remained unchanged over the past 30 days. The figure indicates a 24.56% increase year over year.

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 


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