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Vertiv (VRT), a provider of power and cooling solutions for data center server systems, is currently collaborating with NVIDIA. They are also expanding to meet the surge in orders.
Shinhan Investment Securities analyst Ham Hyeong Do explained, “Cooling solutions provide technologies tailored to the characteristics of data centers, such as air cooling, DTC, and immersion cooling. Since cooling solutions are considered from the design stages of the server and data center, track records are important for these products.”
The CapEx of the global top 10 cloud companies is expected to increase by 26% in 2024. This is due to the need for data center investments as AI proliferates. AI data centers have a high proportion of high-performance GPUs, significantly increasing power usage. While the power usage of existing racks is 8kW, AI racks range from 30 to 100kW.
Analyst Ham Hyeong Do said, “All products, including PDUs and network cables, must improve their performance to match the high energy density. The cooling solution also needs a transition from the existing air-cooling to more efficient water-cooling systems.”
Vertiv can provide DTC and immersion methods to its clients and is currently carrying out a national project with NVIDIA in the U.S. They are developing a new cooling solution. This technology combines DTC and immersion methods. They aim to commercialize the final product after testing in 2026.
Vertiv’s order backlog increased from $1.9 billion in 2020 to $5.5 billion in 2023, recording a growth rate that outpaces the industry’s growth speed. They are expanding to keep up with the influx of orders. In 2023, they expanded factories in Europe, China, and Mexico, established a new factory in Austin, USA, and started operating a new factory in India in January 2024.
Analyst Ham Hyeong Do predicted, “In 2024, the effect of the increase in Q will be fully reflected, and profitability will improve.”
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