Vertiv's OneCore: A Game-Changer in AI and HPC Data Center Infrastructure

The AI and high-performance computing (HPC) data center market is undergoing a seismic shift. By 2025, global spending on AI infrastructure has surged past $67 billion annually, driven by the insatiable demand for GPU-accelerated systems and the rise of generative AI. Hyperscalers, cloud providers, and enterprises are racing to deploy infrastructure capable of handling workloads that require power densities exceeding 300 kW per rack. In this high-stakes environment, Vertiv's OneCore emerges as a transformative solution, offering a vertically integrated, modular, and AI-optimized platform that addresses the most pressing challenges of modern data centers.

The Market's Unmet Need: Scalability, Speed, and Efficiency

Traditional data center construction is plagued by delays, cost overruns, and inefficiencies. Building a facility to support AI workloads—a domain dominated by NVIDIA's GB300 NVL72 and other high-density GPU clusters—requires not only advanced cooling and power systems but also a design that can scale rapidly. Vertiv's OneCore tackles these pain points head-on.

• Scalable Power and Density: With power capacities ranging from 5 to 50 MW per block and support for 96 to 944 racks, OneCore accommodates everything from edge micro data centers to hyperscale facilities. This flexibility is critical as AI workloads evolve, requiring infrastructure that can scale without redesigning the entire system.
• Integrated Thermal and Power Systems: The solution combines Vertiv's Trinergy™ UPS, liquid cooling, and heat rejection systems into a single unit. This integration reduces energy waste and ensures that AI-driven workloads—known for their thermal intensity—operate at peak efficiency.
• Rapid Deployment: Prefabricated modules eliminate on-site construction delays, slashing deployment timelines by up to 50%. In a market where time-to-market is a competitive advantage, this speed is invaluable.

Market Trends: AI's $1 Trillion Future and Vertiv's Strategic Position

The AI infrastructure market is projected to grow at a compound annual growth rate (CAGR) of 17.5% through 2029, reaching $448 billion in server and storage spending alone. By 2030, the semiconductor industry is expected to surpass $1 trillion in sales, with AI chips accounting for over 20% of this total. Vertiv's OneCore is uniquely positioned to capitalize on these trends.

• NVIDIA Synergy: OneCore is optimized for NVIDIA's AI reference architectures, including the GB300 NVL72 and Kyber platforms. This alignment ensures compatibility with the most advanced AI hardware, a critical factor as NVIDIA's GPUs dominate 90% of GPU-accelerated server revenue.
• Sustainability and Cost Efficiency: With energy costs accounting for up to 40% of a data center's operating budget, OneCore's energy-efficient design—featuring liquid cooling and 800 VDC power systems—reduces long-term expenses. This aligns with global sustainability mandates and corporate ESG goals.
• Edge Computing Expansion: As edge computing markets grow to $250 billion by 2024, Vertiv's modular solutions enable rapid deployment in distributed environments, from urban micro data centers to remote industrial sites.

Financial Strength and Strategic Execution

Vertiv's Q2 2025 results underscore its financial robustness and market leadership. The company reported a 35% year-over-year revenue increase to $2.638 billion, with adjusted diluted EPS rising 42% to $0.95. A $8.5 billion backlog and a book-to-bill ratio of 1.2x reflect strong demand, while its $2.3 billion liquidity position provides flexibility for growth.

Strategic moves further solidify its edge:
- Acquisition of Great Lakes Data Racks & Cabinets: This $200 million deal enhances Vertiv's vertical integration, reducing deployment times by 30% and enabling faster customization for AI infrastructure.
- Partnership with Oklo: Integrating small modular nuclear reactors (SMRs) into data center operations addresses the energy demands of AI workloads while positioning Vertiv as a leader in sustainable infrastructure.
- Digital Twin Innovation: Using NVIDIA's Omniverse, Vertiv's digital twin technology allows real-time simulation of data center designs, minimizing costly errors and accelerating deployment.

Competitive Advantages: Outpacing Rivals in a Crowded Market

While competitors like Generac, Schneider Electric, and nVent Electric are expanding their AI infrastructure offerings, Vertiv's vertically integrated approach and AI-specific focus give it a distinct edge.

• End-to-End Optimization: Unlike modular solutions from rivals, OneCore's integration of power, cooling, and IT infrastructure ensures seamless performance for AI workloads.
• Thermal Leadership: Vertiv's liquid cooling revenue doubled in Q1 2025, outpacing competitors in a segment critical to AI's thermal challenges.
• Execution Speed: Prefabricated modules and a global manufacturing footprint enable Vertiv to deploy solutions faster than competitors reliant on on-site construction.

Risks and Mitigation

Despite its strengths, Vertiv faces challenges:
- Tariffs and Supply Chain Volatility: These have temporarily pressured margins, but the company expects resolution by year-end.
- High Valuation: A P/E of 77.67 and EV/EBITDA of 28.68 reflect high expectations. However, Vertiv's strong backlog and margin expansion targets (aiming for 25% by 2029) justify the premium.

Investment Thesis: A Must-Hold Play in the AI Revolution

For investors, Vertiv's OneCore represents a rare confluence of market tailwinds, technological leadership, and financial strength. The AI infrastructure boom is not a short-term trend but a structural shift, with demand expected to grow for over a decade. Vertiv's ability to deliver scalable, efficient, and AI-optimized solutions positions it as a key enabler of this transformation.

Key Takeaways for Investors:
1. Long-Term Growth: With AI infrastructure spending projected to reach $1 trillion by 2030, Vertiv's OneCore is poised to capture a significant share of this market.
2. Margin Resilience: Strategic acquisitions and operational efficiencies are driving margin expansion, countering near-term headwinds.
3. Strategic Partnerships: Collaborations with NVIDIA, Intel, and Oklo reinforce Vertiv's role as a foundational player in the AI ecosystem.

In a world where AI is the new electricity, Vertiv's OneCore is the infrastructure that powers it. For investors seeking exposure to the AI-driven data center revolution, Vertiv is not just a play—it's a necessity.