Vertiv and Generac Holdings Battle for Dominance in Data Center Infrastructure Market

Vertiv (VRT) and Generac Holdings (GNRC) are major players in the data center infrastructure market. Vertiv offers advanced thermal and power management systems, while Generac provides backup power and energy storage systems. Both companies are expected to benefit from the growing demand for data center infrastructure, with a CAGR of 17.3% from 2025 to 2030. Vertiv's strong product portfolio and rich partner base, including NVIDIA and Intel, make it a strong contender. Generac's expanding portfolio and new range of high-capacity generators specifically designed for data centers also make it a promising investment.

Title: Vertiv (VRT) vs. Generac Holdings (GNRC): Which Data Center Infrastructure Stock Has the Greater Upside Potential?

Vertiv (VRT) and Generac Holdings (GNRC) are major players in the data center infrastructure market, each offering critical solutions for data centers and industrial environments. While Vertiv focuses on advanced thermal and power management systems tailored for large-scale data centers, Generac provides backup power and energy storage systems increasingly used in data center applications.

According to a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both Vertiv and Generac Holdings are likely to gain from this massive growth opportunity.

The Case for Vertiv (VRT)

Vertiv is a leading provider of thermal and power management solutions for data centers. The increasing complexity of AI hardware and edge computing further increases the demand for power. Vertiv's extensive product portfolio spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. In the first quarter of 2025, net sales jumped 24% year over year and 25% organically to $2.036 billion. Organic orders on a trailing 12-month (TTM) basis increased roughly 20% compared with the TTM period ended March 2024, reflecting strong market demand. As hyperscalers and enterprises increasingly scale AI deployments to support high-performance data centers, Vertiv’s solutions are gaining traction. Strong capital expenditure spending plans by hyperscalers on data center capacity expansion bode well for Vertiv. The company’s rich partner base, which includes Maxom, Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen, is a key catalyst. Vertiv aims to stay one GPU generation ahead of NVIDIA, providing efficient and scalable power solutions for next-generation AI data centers.

The Case for Generac Holdings (GNRC)

Generac Holdings is benefiting from an expanding portfolio, which has been a key driver of growth. It recently expanded its robust portfolio with a new range of high-capacity generators specifically designed for the data center market. In April 2025, the company introduced a new lineup of five generators, ranging from 2.25 MW to 3.25 MW, specifically designed to meet the demanding power needs of data centers. These generators feature advanced engines, controllers, and alternators, offering scalable, reliable, and low-emission energy solutions for hyperscale, colocation, enterprise, and edge data centers. The rapid growth of artificial intelligence applications has led to a surge in the construction of energy-intensive data centers, which is likely to spur demand for power consumption/backup power in the near future. The company is also focused on capitalizing on a growing pipeline of international data center opportunities, and initial shipments of large megawatt generators are anticipated in the second half of 2025.

Price Performance and Valuation

In the year-to-date period, Vertiv’s shares have rallied 12.1%, whereas Generac Holdings’ shares have lost 5.3%. The decline in Generac Holdings is due to macroeconomic uncertainties and cost pressures due to elevated tariff levels. Vertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. Valuation-wise, Vertiv and Generac Holdings shares are currently overvalued as suggested by a Value Score of D and C, respectively. In terms of the forward 12-month Price/Sales, Vertiv shares are trading at 4.73X, higher than Generac Holdings’ 1.90X.

Earnings Estimates

The Zacks Consensus Estimate for Vertiv’s 2025 earnings is pegged at $3.56 per share, which has increased by a penny over the past 30 days, indicating a 24.91% increase year over year. The Zacks Consensus Estimate for Generac Holdings' 2025 earnings is pegged at $7.42 per share, which has remained unchanged over the past 30 days, indicating a 2.06% increase year over year.

Conclusion

While both Vertiv and Generac Holdings are well-positioned to benefit from the booming data center market, Vertiv is the stronger investment option compared to Generac Holdings. Vertiv’s AI-driven momentum and strategic partnerships position it more favorably for near-term upside. Despite GNRC’s expanding portfolio, the company is getting affected by cost pressures due to elevated tariff levels, macroeconomic uncertainties, and softening demand in certain markets. Currently, Vertiv has a Zacks Rank #3 (Hold), making the stock a stronger pick compared to Generac Holdings, which has a Zacks Rank #4 (Sell).

References

[1] https://finviz.com/news/105739/vrt-vs-gnrc-which-data-center-infrastructure-stock-has-an-edge-now
[2] https://www.globenewswire.com/news-release/2025/07/16/3116574/28124/en/Data-Center-Rack-Market-Forecasts-2025-2030-Server-Rack-Segment-to-Lead-in-Growth-with-Rising-Demand-for-High-density-Computing.html