Can Vertiv Become a Cornerstone of the AI Infrastructure Ecosystem?

The global data center industry is undergoing a seismic shift driven by the exponential growth of artificial intelligence (AI). As hyperscalers and enterprises race to deploy AI workloads, the demand for specialized infrastructure-particularly power and thermal management solutions-has surged. In this evolving landscape, Vertiv (VRTX) has positioned itself as a key player, leveraging strategic partnerships, technological innovation, and robust financial performance to capitalize on the AI infrastructure boom. But can it ascend to the role of a cornerstone in this ecosystem?

Strategic Partnerships: Co-Designing the Future of AI Infrastructure

Vertiv's collaboration with NVIDIA stands out as a defining element of its competitive positioning. The two companies are co-designing infrastructure tailored for the next generation of AI factories, focusing on 800 VDC power architectures to meet the megawatt-scale demands of AI and high-performance computing workloads. This partnership, which began in May 2025, has advanced to include platform designs with centralized rectifiers, high-efficiency DC busways, and rack-level DC-DC converters. Vertiv's CEO, Gio Albertazzi, emphasized that the collaboration aims to optimize system-level performance and enable rapid deployment, critical for scaling AI infrastructure.

This alignment with NVIDIA is particularly significant given the latter's dominance in AI hardware. By co-developing solutions, Vertiv is not only securing a role in NVIDIA-powered AI ecosystems but also differentiating itself from competitors who rely on off-the-shelf offerings. The partnership was further validated when Vertiv was named NVIDIA's "Alliance Partner of the Year" in 2024, underscoring its strategic value.

Financial Performance: Fueling Growth Through Demand and Acquisitions

Vertiv's financials in 2025 reflect the strength of its market position. The company reported third-quarter 2025 net sales of $2.68 billion, a 29% year-over-year increase, driven by 43% growth in the Americas and 21% in APAC. Its order backlog surged to $9.5 billion, a 30% year-over-year jump, while organic orders rose 60% YoY. These figures highlight the surging demand for AI infrastructure, with Vertiv's thermal systems, liquid cooling, and modular solutions gaining traction.

Strategic acquisitions have further bolstered Vertiv's capabilities. In late 2025, the company announced a $1.0 billion acquisition of Purge Rite Intermediate to enhance its liquid-cooling expertise for AI data centers. This move addresses a critical need as AI workloads intensify, requiring advanced thermal management to maintain efficiency and prevent hardware degradation.

Competitive Landscape: Navigating Disruption and Rivalry

Despite its momentum, Vertiv faces headwinds. Amazon Web Services recently unveiled its custom-built In-Row Heat Exchanger (IRHX) for NVIDIA Blackwell GPUs, designed to cool high-density AI servers without overhauling existing air-cooled infrastructure. While this innovation threatens to reduce reliance on third-party cooling providers, analysts note that co-development opportunities with AWS could still benefit Vertiv.

The broader competitive arena includes established rivals like Schneider Electric, Eaton, and Huawei, collectively accounting for 41–43% of the data center power market. Schneider Electric, for instance, leads with its EcoStruxure platform, offering integrated energy management solutions, while Huawei specializes in high-density power distribution. However, Vertiv's focus on co-designed, AI-specific infrastructure-particularly its NVIDIA partnership-positions it to capture a unique niche.

Market Share and Growth Projections: A Leader in a Fragmented Market

While Vertiv has not disclosed its exact market share in AI data center infrastructure for 2025, its 2025 revenue is projected to reach $9.325–$9.575 billion, with organic growth of 16.5–19.5%. This trajectory is fueled by AI-driven demand, with the Americas and APAC emerging as key growth engines.

Industry reports indicate that Vertiv, along with Schneider Electric, Eaton, and Huawei, collectively dominate the data center power market. However, the absence of precise market share data for AI-specific infrastructure underscores the need for caution. Vertiv's ability to maintain its edge will depend on sustaining its innovation pace and expanding partnerships in a sector where hyperscalers increasingly prioritize in-house solutions.

Challenges and Risks: The Road Ahead

The AI infrastructure market is highly competitive and rapidly evolving. Hyperscalers like AWS and Microsoft are increasingly developing proprietary solutions, reducing reliance on third-party vendors. Additionally, technological shifts such as the adoption of liquid cooling could disrupt traditional power and thermal management models. Vertiv's response to these challenges will be critical. Its recent acquisition of Purge Rite and expansion of ER&D capabilities signal a commitment to staying ahead of these trends.

Conclusion: A Cornerstone in the Making

Vertiv's strategic alignment with NVIDIA, robust financial performance, and focus on AI-specific infrastructure position it as a formidable player in the AI ecosystem. While competition from hyperscalers and rivals remains intense, its co-design approach and technological agility offer a path to differentiation. If the company can sustain its innovation momentum and expand its partnerships, it has the potential to become a cornerstone of the AI infrastructure transformation. However, investors must remain vigilant about market saturation and the risks of commoditization in a sector where proprietary solutions are increasingly the norm.