Vertiv (VRT) Goldman Sachs Communacopia + Technology Conference 2024 summary

Demand environment and market trends

• Orders in the first half of the year rose about 60%, driven by strong cloud and AI infrastructure demand.

• Hyperscale and colocation (colo) segments are the main sources of acceleration, while telecom is weaker.

• Commercial and industrial sectors show opportunity, especially in critical infrastructure.

• AI is expected to further accelerate enterprise data center demand.

Product and solution strategy

• Customers increasingly value system-level solutions across power and thermal, not just point products.

• Flexibility to offer both products and integrated systems is a key competitive advantage.

• Ability to collaborate with major tech players and hyperscalers enhances solution relevance.

AI and technology-driven growth

• AI build-outs increase total addressable market (TAM) per megawatt by about $500,000, with both power and cooling contributing.

• Liquid cooling is a growing component, but air cooling remains relevant for lower-density racks.

• Industry expects rack densities to rise significantly, driving infrastructure densification.

• Hybrid cooling solutions that flexibly combine air and liquid are in demand.