Vertiv Sees Data Center Demand Strengthen as AI Infrastructure Pipeline Expands

Demand for data center infrastructure is strengthening , driven by expanding AI-computing needs, hyperscaler investment and broader global activity.

Vertiv continues to see pipeline growth and is targeting 20%–22% organic revenue CAGR from 2025 through 2030.

Vertiv is expanding beyond individual components into integrated power, cooling and deployment solutions, while its proposed Utility Innovation Group acquisition could help the company influence data center power architecture earlier in the design process.

The company expects further growth from emerging technologies, including 800-volt power systems and advanced liquid and hybrid cooling.

Vertiv anticipates sidecar-related 800-volt demand to accelerate in late 2027 and is targeting adjusted operating margins above 27% by 2030.

Vertiv NYSE: VRT executives said demand for data center infrastructure remains strong and is showing signs of further strengthening, citing expanding customer pipelines, broader global activity and accelerating sales cycles.

Speaking at a Goldman Sachs event, Chief Executive Officer Gio Albertazzi said the company’s increased organic revenue compound annual growth target of 20% to 22% for 2025 through 2030 reflects a combination of market growth, Vertiv’s strengthening competitive position and an expanding portfolio of power, cooling and services offerings.

He pointed to public investment plans from hyperscalers and other computing-focused companies, as well as a shift from what had been a predominantly U.S.-driven market acceleration to more widespread global demand.

Albertazzi said Vertiv’s pipeline has continued to grow despite industry discussion around potential data center construction constraints, financing needs and policy restrictions.

He said the company sees no signs of weakening in customer plans and believes demand for compute capacity, particularly AI computing capacity, will continue to expand.

The CEO also said the industry has historically addressed constraints through technology and operational solutions. Vertiv’s offerings include closed-loop cooling systems, powertrain efficiency technologies and fluid-management products intended to reduce water use.

Albertazzi highlighted PurgeRite and NearZero, saying NearZero is designed to enable recirculation of water during data center operation while minimizing water consumption during commissioning.

Vertiv has been broadening its portfolio from individual components, such as uninterruptible power systems, chillers, coolant distribution units and switchgear, to system-level offerings including Vertiv OneCore and Vertiv SmartRun.

The company also continues to expand its services business.

Chief Financial Officer Craig Chamberlin said Vertiv’s proposed acquisition of Utility Innovation Group, or UIG, is intended to expand its ability to influence how data center power infrastructure is designed, including behind-the-meter power architecture.

Chamberlin described UIG as an asset that could help Vertiv capture additional growth and participate earlier in the data center design process.

He said the company structured the transaction with an earn-out and would view achievement of that earn-out as a positive outcome for the acquisition.