Investments Anchor Vertiv’s Growth Strategy as AI-Driven Data Center Orders Surge 60% YoY

Management’s strategy to stay ahead of customer orders as they continue to increase helped the Vertiv Holdings Q3 earnings report demonstrate robust momentum in AI-driven data center demand, with the company raising full year guidance for earnings per share (EPS), sales, and free cash flow.

The Columbus, Ohio-based firm, which provides digital infrastructure and services for data centers, communication networks, and commercial and industrial facilities, produced a net profit of $1.37 billion on $2.675 billion of total revenues in the three months that ended Sept. 30, up 43% from the same period in 2024 and $86 million above guidance.

Its net income was $398.5 million, which is a significant increase compared to $176.6 million in the same quarter last year.

Order momentum accelerated in Q3, with orders up 60% Y-o-Y versus Q2's 15% increase. Order backlog grew from $8.5 billion to $9.5 billion. This order surge is reflected in the company’s 5.8% operating margin for the quarter, which was five points lower than in Q3 2024 but up from 4.1% in this year’s second quarter.

Vertiv CEO and Director Giordano Albertazzi said the hearty uptick in orders can be credited to “the technology evolution in the market that goes in our direction, plus customer confidence in the company’s service and competitive advantage.”

During the Q3 investor call, leaders said strategic acquisitions and increased investment in capital expenditures and engineering research and development (R&D) reflect their sense of urgency in capturing opportunities.

Albertazzi noted that the company has a substantial order pipeline, so management's approach is to continue investments in capacity, R&D, and technology to stay ahead of demand. This includes accelerating funding for the system layer to support data centers as they’re becoming more complex.

“Our capacity expansion strategy keeps us six to 12 months ahead of demand curves, maintaining technology leadership while driving operational efficiency,” he explained. “The other axis is technology, and our engineering and R&D spending will grow 20% or more in 2026 with flexibility to accelerate further. Through aggressive R&D investments, we are committed to staying multiple GPU generations ahead.”

“We expect to accelerate our investments in supply chain and services capabilities and capacity,” Albertazzi noted. “Tariffs remain dynamic, but we have a clear action plan and strong execution.”

Vertiv is implementing regional restructuring programs in EMEA to position for future growth and is accelerating manufacturing and service capacity investments across all regions and particularly in the Americas. 

Albertazzi said the company is looking for opportunities for bolt-on acquisitions of smaller companies or platforms and larger strategic acquisitions. He cited the firm’s Great Lakes acquisition in August as one example.

Looking ahead at 2026, management plans to increase R&D spending by 20%. They also anticipate continued significant organic sales growth. Part of this is expected to come from the planned release of Vertiv’s 800-volt DC power architecture portfolio that aligns with NVIDIA's 2027 rollout of their Rubin Ultra platforms.

Chief Financial Officer (CFO) David Fallon noted that Vertiv’s Y-o-Y incremental margin in Q3 was about 30% and said that position supports the leadership’s goal to reach a full year adjusted operating margin target of 25% in 2029.

Leaders said they’ll continue to emphasize technology stewardship, expanding backlog, and aggressive investment in capacity and R&D, while addressing ongoing tariff and EMEA challenges.

New Acquisitions and Partner Awards

Vertiv’s third-quarter financial performance was underscored by a series of strategic acquisitions and ecosystem recognitions that expand the company’s technological capabilities and market reach amid AI-driven demand.

Acquisition of Waylay NV: AI and Hyperautomation for Infrastructure Intelligence

On August 26, Vertiv announced its acquisition of Waylay NV, a Belgium-based developer of generative AI and hyperautomation software. The move bolsters Vertiv’s portfolio with AI-driven monitoring, predictive services, and performance optimization for digital infrastructure.

Waylay’s automation platform integrates real-time analytics, orchestration, and workflow automation across diverse connected assets and cloud services—enabling predictive maintenance, uptime optimization, and energy management across power and cooling systems.

“With the addition of Waylay’s technology and software-focused team, Vertiv will accelerate its vision of intelligent infrastructure—data-driven, proactive, and optimized for the world’s most demanding environments,” said CEO Giordano Albertazzi.

Completion of Great Lakes Acquisition: Expanding White Space Integration

Just days earlier, as alluded to above, Vertiv finalized its $200 million acquisition of Great Lakes Data Racks & Cabinets, a U.S.-based manufacturer of enclosures and integrated rack systems. The addition expands Vertiv’s capabilities in high-density, factory-integrated white space solutions; bridging power, cooling, and IT enclosures for hyperscale and edge data centers alike.

Great Lakes’ U.S. and European manufacturing footprint complements Vertiv’s global reach, supporting faster deployment cycles and expanded configuration flexibility. 

Albertazzi noted that the acquisition “enhances our ability to deliver comprehensive infrastructure solutions, furthering Vertiv’s capabilities to customize at scale and configure at speed for AI and high-density computing environments.”

2024 Partner Awards: Recognizing the Ecosystem Behind Growth

Vertiv also spotlighted its partner ecosystem in August with its 2024 North America Partner Awards. The company recognized 11 partners for 2024 performance, growth, and AI execution across segments:

• Partner of the Year – SHI for launching a customer-facing high-density AI & Cyber Labs featuring Vertiv liquid cooling.
• IT Distribution – Ingram Micro for rapid enablement supporting accelerated AI growth.
• Specialty Distributor – Graybar for fastest growth in three-phase UPS.
• E-Commerce – PCNation for outsized YoY growth and alignment.
• AI Excellence – Computacenter for positioning Vertiv in complex, high-performance environments.
• Solution Integration – WWT for end-to-end AI solutions and deepening collaboration via the Advanced Technology Center.
• Alliance Partner – NVIDIA for co-developing AI factory go-to-market and solution innovation.
• Education – CDWG, Enterprise – Dell Technologies (including the NeoCloud project), Public Sector – Allcom Global Services, Canada – Javco.

These awards underscored Vertiv’s continued investment in partner enablement, global distribution, and AI-ready infrastructure delivery from edge to hyperscale.

“Our partner ecosystem is critical to delivering edge-to-AI solutions. Their expertise with the Vertiv portfolio helps customers stay ahead of increasing demands with next-gen products,” said Alex Johnson, VP, North America channel sales for Vertiv.

New Product and System Offerings

Vertiv followed its earnings announcement with a wave of new product introductions this fall, each aligned with next-generation compute and AI factory requirements.

OCP-Compliant Ecosystem: Modular Power, Cooling, and Racks for AI Density

At the 2025 OCP Global Summit, Vertiv unveiled an integrated, OCP-aligned suite combining rack, power, and cooling systems designed to address megawatt-scale density challenges.

The Vertiv SmartIT OCP Rack, PowerIT PDUs, PowerBar Track busway, and CoolChip Fluid Network manifolds illustrate the company’s modular approach to scalable AI infrastructure.

Vertiv also highlighted collaboration with HARTING on high-efficiency cabling and connectivity solutions that reduce integration complexity.

“Meeting OCP standards is more than a compliance exercise; it’s about delivering infrastructure that performs at scale,” said John Niemann, vice president of Vertiv’s thermal business unit.

Advancing 800 VDC Designs with NVIDIA

Further reinforcing its AI alignment, Vertiv announced a milestone in its 800 VDC power platform collaboration with NVIDIA. The October 13 release detailed the company’s engineering readiness for data center architectures optimized for NVIDIA’s upcoming Rubin Ultra platforms.

Vertiv’s 800 VDC reference designs incorporate centralized rectifiers, DC busways, and rack-level converters engineered for megawatt-scale workloads.

“Powering the next generation of megawatt-scale AI factories requires a fundamental shift in power architectures,” said Dion Harris of NVIDIA. “Vertiv and NVIDIA are working closely together to develop the scalable and efficient power foundation needed to unlock the full potential of next-generation AI infrastructure.”

Expanding High-Density Power and Thermal Portfolios

Meanwhile, Vertiv’s PowerIT rack PDUs, launched in September, now support up to 57.6 kW per rack and incorporate advanced load balancing, cybersecurity, and remote management.

On the cooling side, the Vertiv CoolPhase Wall, also launched this Fall, introduced new 24/7 wall-mounted thermal control for small IT and edge deployments, delivering 60% greater airflow than comfort systems and incorporating R-32 refrigerant for low-GWP compliance.

The October CoolPhase Portfolio Update extended those sustainability gains across Vertiv’s perimeter, row, and wall cooling systems, while using R-454B and R-32 refrigerants that meet or exceed 2027 EPA and California standards.

“Customers looking to stay ahead of regulatory deadlines can start that journey today,” said Ben Smith, VP of thermal management with Vertiv. “Our CoolPhase systems align with environmental goals while maintaining the performance and reliability operators expect.”

Key Personnel Appointments and Leadership Changes

Strengthening Policy Presence in Washington, D.C.

Vertiv expanded its U.S. footprint beyond manufacturing with the launch of a new government relations office in Washington, D.C. in October. The initiative, led by former U.S. diplomat Erica Thomas, positions Vertiv to contribute to AI policy formation and align with the federal AI Action Plan and American AI Exports Program.

CEO Giordano Albertazzi emphasized that the move “comes at a pivotal moment as the U.S. moves from planning to implementing its AI Action Plan,” reinforcing Vertiv’s role as an American-headquartered enabler of AI infrastructure worldwide.

Leadership Transitions in EMEA and Technology

Vertiv also announced a series of leadership transitions signaling continuity and depth in its bench strength.

• Paul Ryan, currently Chief Procurement Officer, will succeed Karsten Winther as EMEA President on January 1, 2026.
• Scott Armul, Executive Vice President of global portfolio and business units, will assume the role of Chief Product and Technology Officer following Stephen Liang’s retirement.

These changes align the company’s product, R&D, and technology strategy under a unified leadership structure, supporting Vertiv’s push toward systems-level innovation and execution excellence.

New CFO Appointment

In a parallel transition, Craig Chamberlin will join Vertiv as Executive Vice President and Chief Financial Officer effective November 10, succeeding David Fallon, who will retire after eight years of service.

Chamberlin brings experience from Wabtec Corporation and General Electric, and will focus on operational excellence and capital optimization as Vertiv continues scaling for AI-era demand.

Outlook: Vertiv’s AI-Fueled Momentum

From record-breaking order growth to strategic acquisitions and expanded R&D commitments, Vertiv’s fall announcements trace a clear arc toward deeper integration across digital infrastructure layers.

The combination of AI-native power architectures, modular cooling systems, software-driven automation, and policy engagement positions Vertiv at the intersection of technology, regulation, and infrastructure readiness.

As hyperscale AI facilities redefine data center design, Vertiv’s evolving ecosystem, from racks to 800 V DC platforms, continues to reflect the company’s stated goal of staying multiple GPU generations ahead of deployment timelines.

At Data Center Frontier, we talk the industry talk and walk the industry walk. In that spirit, DCF Staff members may occasionally use AI tools to assist with content. Elements of this article were created with help from OpenAI's GPT5.

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