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.
Pipeline Growth and Data Center 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.
Utility Innovation Group Acquisition and Portfolio Strategy
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.
Vertiv does not separately define or report “solutions” revenue, Chamberlin said. Instead, the company views its offerings as spanning point products, system-level products and broader architecture-level deployments. Its strategy is to provide customers with options ranging from individual UPS products to integrated thermal and powertrain systems and full deployments such as SmartRun and OneCore.
Albertazzi said the company’s converged infrastructure products create value by moving complexity away from construction sites and into a more industrialized manufacturing process. He characterized recent supply-chain-related comments as being specific to the coordination required for these complex offerings rather than a broad supply chain issue.
According to Albertazzi, integrating complex systems across factories can create timing variability in revenue recognition depending on when components converge at an integration facility. Vertiv is investing in integration capabilities and capacity to support demand for these products, he said.
800-Volt Power and Cooling Innovation
On power infrastructure, Albertazzi said Vertiv expects a “multi-architecture” future rather than a single industrywide approach. The company sees opportunities in 800-volt direct-current configurations, including sidecar deployments and native end-to-end 800 VDC powertrains.
He said Vertiv expects demand for sidecar-related 800-volt products to accelerate in the second half of 2027. Fully native end-to-end 800-volt powertrain systems are expected to become commercially available near the end of 2027, with volumes anticipated in 2028.
Chamberlin said 800-volt architectures could increase Vertiv’s content per megawatt, although the opportunity will depend on how a customer’s power architecture is constructed. Vertiv expects to offer products across the portfolio, including UPS systems, batteries, sidecars and other power technologies.
On the cooling side, Albertazzi said Vertiv is continuing to develop liquid cooling systems, coolant distribution units, chillers, dry coolers and heat-rejection technologies. He cited the company’s Strategic Thermal Labs acquisition as a way to engage earlier in silicon-related thermal development, and said Vertiv is also enthusiastic about its ThermoKey acquisition in dry cooling.
Albertazzi highlighted the Vertiv CoolLoop Trim Cooler, a hybrid approach combining dry cooling with chiller capabilities. He said the product can extend the time a data center operates using free cooling while retaining additional cooling capacity for hotter conditions.
Margins, Pricing and Capital Deployment
Vertiv has targeted adjusted operating margins of more than 27% by 2030. Chamberlin said anticipated margin expansion is expected to come from volume leverage, manufacturing productivity, purchasing efficiency and continued price-cost management.
He said the company regularly reviews inflation and tariffs and uses contract provisions, pricing mechanisms and internal countermeasures—including sourcing and deployment changes—to manage input-cost volatility.
Chamberlin added that infrastructure solutions such as SmartRun and OneCore generally carry product margins in line with Vertiv’s broader product business. Products have lower margins than services, he said, so product growth that outpaces services could affect mix. Vertiv’s Investor Day outlook assumed services and products would grow at similar rates.
Albertazzi said capital priorities include continued investment in research and development, manufacturing capacity and potential acquisitions that complement Vertiv’s portfolio. He said the company sees opportunities for both organic and inorganic growth.
About Vertiv (NYSE:VRT)
Vertiv Holdings Co (NYSE: VRT) designs, manufactures and services critical digital infrastructure that helps data centers, communications networks and other facilities operate reliably and efficiently. Its solutions support the availability, performance and growth of information technology systems.
The company’s products and services include power management and distribution equipment, uninterruptible power supplies, thermal management and cooling systems, racks and integrated infrastructure, monitoring and management software, and lifecycle services.
