Vertiv (VRT) TD Cowen 10th Annual Communications Infrastructure Summit summary

Demand environment and order trends

• Demand for data center equipment remains strong, with first half orders up approximately 58% year-over-year and a stronger pipeline than at the start of the year.

• The velocity of the sales funnel has increased, with opportunities converting to orders more quickly.

• Requested customer lead times for large projects have elongated from 9-15 months to 12-18 months, reflecting larger project sizes and better customer visibility.

• Large orders have become more significant, with the average data center size now five to ten times larger than before, causing greater quarter-to-quarter order variability.

• The mix of direct enterprise, hyperscale, and colo customers is shifting, with expectations for future changes in customer composition.

Customer engagement and product mix

• Engagement with customers often begins early in the project cycle, especially as data center designs evolve for AI and high-density loads.

• Product demand is broad-based across the portfolio, with notable momentum in liquid cooling and powertrain solutions.

• No single hyperscale customer dominates revenue exposure, and share of wallet can shift over time.

• Both self-build and third-party leasing models are being used by hyperscalers, with a balanced approach to meeting capacity needs.

Lead times, capacity, and supply chain

• Internal equipment lead times have generally shortened, but customer-requested lead times for large projects have increased, providing better production visibility.

• Most product lines can be delivered within customer lead times, except for very large or specialized orders.

• Switchgear capacity has doubled since the E&I acquisition, with further doubling planned through 2025.

• Investments in production capacity are ongoing, with a 25-30% buffer maintained to handle demand spikes.

• Capacity is designed to match regional demand, but global manufacturing flexibility is leveraged for efficiency.