Vertiv designs, builds, and services critical digital infrastructure for data centers.

They do not make chips, servers, or software. Instead, they build everything around the servers that keeps them alive and operating 24 hours a day.

Their main focus is power and cooling. Data centers cannot lose electricity even for a second, so Vertiv provides large battery backup systems, power distribution units, and electrical equipment that make sure thousands of servers receive stable power at all times. If the power grid fails, Vertiv’s systems keep the data center running.

Cooling is just as important. Modern AI servers generate a huge amount of heat, far more than older data center equipment. Vertiv builds advanced cooling systems, including liquid cooling and precision air systems, that remove this heat so the machines do not overheat and shut down.

They also provide monitoring and control systems that allow operators to track temperature, power flow, and potential failures in real time. This helps data center operators prevent problems before they happen and keep their facilities running safely.

Pretty much all hyperscalers are customers: like Amazon, Microsoft, and Google, as well as other data center providers, and neoclouds.

Anyone building serious computing infrastructure needs reliable power and cooling, which makes Vertiv a key supplier. AI racks use several times more power and produce several times more heat than traditional servers. This means data centers must be redesigned, and Vertiv provides much of the equipment required for these new designs.

I’ve been writing about it a lot, but I don’t think AI is anywhere near done. Every day, there are innovations that completely change the current meta. It’s almost impossible to keep up with the rapid pace of change in AI, and it just keeps getting more and more impressive. That’s why I’m doubling down on AI infrastructure.

They have been growing consistently and margins used to be around 6% but that has changed dramatically. Over the last few quarters their margins have more than doubled to now just over 14% while revenue growth has accelerated. Now it’s on the verge of breaking out. So, I’m initiating a starter position.