Data Center Cooling Market Poised for Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy VRT?
Source: NASDAQ.COM
- Market Growth Potential: According to Precedence Research, the global data center cooling market is projected to grow at over 10% annually, significantly boosting demand for Vertiv's liquid cooling solutions and reinforcing its market position through 2034.
- Significant Revenue Growth: Vertiv's revenue surged nearly 30% in the first three quarters of 2025, with profits more than doubling, indicating strong performance in the AI data center cooling sector and suggesting ongoing business expansion potential.
- Stable Dividend Yield: Digital Realty Trust, as a real estate investment trust, operates over 300 facilities generating nearly $1.6 billion in annual revenue, with a stable dividend yield of 3.1%, providing investors with a reliable income source amidst industry volatility.
- Risks and Opportunities: Nebius Group achieved a remarkable 355% year-over-year revenue growth to $146 million in Q3, yet its losses expanded to nearly $120 million, highlighting high-risk characteristics in the AI infrastructure space, although a multibillion-dollar contract with Microsoft offers promising future growth prospects.
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Analyst Views on VRT
Wall Street analysts forecast VRT stock price to fall
17 Analyst Rating
15 Buy
2 Hold
0 Sell
Strong Buy
Current: 259.370
Low
195.00
Averages
206.07
High
230.00
Current: 259.370
Low
195.00
Averages
206.07
High
230.00
About VRT
Vertiv Holdings Co. provides mission-critical digital infrastructure technologies and lifecycle services primarily for data centers, communication networks, and commercial and industrial environments. The Company operates in three business segments: the Americas; Asia Pacific, and Europe, Middle East & Africa. The Company's offerings include alternate current (AC) and direct current (DC) power management, thermal management, low/medium voltage switchgear, busbar, air cooled and liquid cooled thermal management products, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, software for managing IT equipment, management systems for monitoring and controlling digital infrastructure, and services. It also provides preventative maintenance, acceptance testing, engineering and consulting, remote monitoring, training, spare parts, specialized fluid management, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Optimistic Outlook for AI Sector Stocks
- ASML's Market Position: ASML Holding's extreme ultraviolet (EUV) machines play a crucial role in semiconductor manufacturing, with the AI chip market expected to grow by 29% by 2030, driving demand for ASML despite a limited customer base, while maintenance revenue provides recession resistance.
- Financial Performance: In 2025, ASML generated revenue of €33 billion (approximately $37 billion), a 16% year-over-year increase, with net income reaching €9.6 billion (around $11 billion), reflecting a 27% growth, showcasing the company's success in cost control.
- Vertiv's Growth Potential: Vertiv focuses on data center infrastructure, achieving over $10 billion in net sales in 2025, a 28% increase, with forecasts for 2026 between $13.25 billion and $13.75 billion, highlighting its critical role in the data center market.
- Investment Appeal: Despite Vertiv's P/E ratio of 71, its forward P/E of 40 due to anticipated growth makes it an attractive investment, with a $2,420 investment buying around 10 shares amid the data center construction boom.
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ASML and Vertiv's Key Roles in AI and Data Centers
- ASML's Market Monopoly: ASML's extreme ultraviolet (EUV) machines are critical in semiconductor manufacturing, with the AI chip market expected to grow by 29% by 2030, further driving demand for ASML's equipment and solidifying its monopoly in high-tech markets.
- Strong Financial Performance: In 2025, ASML generated revenue of €33 billion (approximately $37 billion), a 16% year-over-year increase, with net income reaching €9.6 billion (about $11 billion), reflecting its resilience and profitability amid economic fluctuations.
- Vertiv's Growth Potential: Vertiv's position in the data center cooling equipment market benefits from a projected 32% compound annual growth rate in the liquid cooling industry, with net sales exceeding $10 billion in 2025, marking a 28% increase and highlighting its critical role in the rapidly expanding data center market.
- Investment Appeal: Despite ASML and Vertiv's P/E ratios of 46 and 71 respectively, investors are willing to pay a premium due to their core positions in AI and data centers, with significant growth anticipated in the coming years.
See More
AI Infrastructure Investment Continues to Grow Amid Market Uncertainty
- Market Outlook Optimistic: According to Statista, global spending on AI infrastructure is projected to nearly triple to $902 billion by 2029, indicating that the current dip in tech stocks may just be a temporary pullback before another rise in the coming years.
- Dell Technologies Strong Performance: Despite a sluggish PC sales environment, Dell's infrastructure solutions business drove annual revenue to a record $113 billion, up 19%, with AI orders reaching $64 billion, showcasing robust market demand and future growth potential.
- Nebius Group Rapid Expansion: Nebius's AI cloud revenue surged 830% year-over-year last quarter, and its active power capacity has expanded tenfold in 18 months, although it still struggles to meet demand, leading to longer contracts and higher selling prices.
- Vertiv's Growth Potential: Vertiv's organic sales grew 26% last year to over $10 billion, with orders surging 81% and backlog hitting $15 billion, indicating a trend of customers locking in capacity early, with an expected organic sales growth of approximately 28% in 2026.
See More
AI Supercycle Fuels Liquid Cooling Market Growth
- Market Growth Potential: PwC estimates that AI could boost global GDP by 15 percentage points over the next decade, highlighting its potential as a supercycle impacting various sectors, including chips and software.
- Demand for Cooling Solutions: Vertiv Holdings enhances data center energy efficiency through liquid cooling solutions, with its stock surging 238% over the past year, reflecting strong growth momentum in the liquid cooling market.
- Surge in Orders: Vertiv reported a book-to-bill ratio of 2.9 in Q4 2025, indicating that new orders significantly exceeded fulfillment capacity, resulting in a year-end backlog of $15 billion, well above its $10.2 billion annual revenue.
- Future Growth Expectations: The liquid cooling market is projected to grow at an annual rate of 31.5%, and with Vertiv's advantages in liquid cooling systems, the company anticipates a continued adjusted earnings growth of 42%-45%, making it a solid growth stock to invest in.
See More
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- War Exit Consideration: President Trump is contemplating an exit from the Iran war even if the Strait of Hormuz remains closed, a decision that could significantly impact U.S. military strategy and diplomatic relations in the Middle East.
- Positive Stock Market Reaction: The stock market surged as investors reacted positively to the potential for peace initiatives from Trump, indicating increased confidence in future geopolitical stability.
- Mixed Oil Price Movement: Despite the stock market rally, oil prices showed mixed results, reflecting concerns over energy supply security amid heightened geopolitical tensions in the Strait of Hormuz.
- Strategic Impact Assessment: Trump's potential decision could alter the U.S. role in the Middle East, affect global energy markets, and lead other nations to reassess their relationships with the United States.
See More
Market Rebounds as Trump Considers Ending Iran Conflict
- Market Rebound: The stock market rebounded in the morning session, with the S&P 500 rising over 1% due to stabilizing oil prices and reports of President Trump's consideration to end military conflict in Iran, alleviating investor concerns about prolonged hostilities.
- Stock Performance: Vertiv (NYSE:VRT) surged 3.5%, Flowserve (NYSE:FLS) rose 3.3%, EMCOR (NYSE:EME) increased by 3.6%, and Terex (NYSE:TEX) jumped 3.9%, reflecting a positive sentiment towards the outlook of these sectors amid geopolitical tensions.
- Terex Volatility: Terex shares have experienced 20 moves greater than 5% in the past year, and today's increase indicates that the market finds the news significant, although it does not fundamentally alter perceptions of the company's performance, suggesting cautious optimism.
- Investment Returns: Despite Terex's 2.8% rise year-to-date, its current price of $56.57 remains 18.6% below its 52-week high of $69.51, presenting a potential buying opportunity for long-term investors, with a $1,000 investment five years ago now valued at $1,228.
See More
Optimistic Outlook for AI Sector Stocks
- ASML's Market Position: ASML Holding's extreme ultraviolet (EUV) machines play a crucial role in semiconductor manufacturing, with the AI chip market expected to grow by 29% by 2030, driving demand for ASML despite a limited customer base, while maintenance revenue provides recession resistance.
- Financial Performance: In 2025, ASML generated revenue of €33 billion (approximately $37 billion), a 16% year-over-year increase, with net income reaching €9.6 billion (around $11 billion), reflecting a 27% growth, showcasing the company's success in cost control.
- Vertiv's Growth Potential: Vertiv focuses on data center infrastructure, achieving over $10 billion in net sales in 2025, a 28% increase, with forecasts for 2026 between $13.25 billion and $13.75 billion, highlighting its critical role in the data center market.
- Investment Appeal: Despite Vertiv's P/E ratio of 71, its forward P/E of 40 due to anticipated growth makes it an attractive investment, with a $2,420 investment buying around 10 shares amid the data center construction boom.
See More
ASML and Vertiv's Key Roles in AI and Data Centers
- ASML's Market Monopoly: ASML's extreme ultraviolet (EUV) machines are critical in semiconductor manufacturing, with the AI chip market expected to grow by 29% by 2030, further driving demand for ASML's equipment and solidifying its monopoly in high-tech markets.
- Strong Financial Performance: In 2025, ASML generated revenue of €33 billion (approximately $37 billion), a 16% year-over-year increase, with net income reaching €9.6 billion (about $11 billion), reflecting its resilience and profitability amid economic fluctuations.
- Vertiv's Growth Potential: Vertiv's position in the data center cooling equipment market benefits from a projected 32% compound annual growth rate in the liquid cooling industry, with net sales exceeding $10 billion in 2025, marking a 28% increase and highlighting its critical role in the rapidly expanding data center market.
- Investment Appeal: Despite ASML and Vertiv's P/E ratios of 46 and 71 respectively, investors are willing to pay a premium due to their core positions in AI and data centers, with significant growth anticipated in the coming years.
See More
AI Infrastructure Investment Continues to Grow Amid Market Uncertainty
- Market Outlook Optimistic: According to Statista, global spending on AI infrastructure is projected to nearly triple to $902 billion by 2029, indicating that the current dip in tech stocks may just be a temporary pullback before another rise in the coming years.
- Dell Technologies Strong Performance: Despite a sluggish PC sales environment, Dell's infrastructure solutions business drove annual revenue to a record $113 billion, up 19%, with AI orders reaching $64 billion, showcasing robust market demand and future growth potential.
- Nebius Group Rapid Expansion: Nebius's AI cloud revenue surged 830% year-over-year last quarter, and its active power capacity has expanded tenfold in 18 months, although it still struggles to meet demand, leading to longer contracts and higher selling prices.
- Vertiv's Growth Potential: Vertiv's organic sales grew 26% last year to over $10 billion, with orders surging 81% and backlog hitting $15 billion, indicating a trend of customers locking in capacity early, with an expected organic sales growth of approximately 28% in 2026.
See More
AI Supercycle Fuels Liquid Cooling Market Growth
- Market Growth Potential: PwC estimates that AI could boost global GDP by 15 percentage points over the next decade, highlighting its potential as a supercycle impacting various sectors, including chips and software.
- Demand for Cooling Solutions: Vertiv Holdings enhances data center energy efficiency through liquid cooling solutions, with its stock surging 238% over the past year, reflecting strong growth momentum in the liquid cooling market.
- Surge in Orders: Vertiv reported a book-to-bill ratio of 2.9 in Q4 2025, indicating that new orders significantly exceeded fulfillment capacity, resulting in a year-end backlog of $15 billion, well above its $10.2 billion annual revenue.
- Future Growth Expectations: The liquid cooling market is projected to grow at an annual rate of 31.5%, and with Vertiv's advantages in liquid cooling systems, the company anticipates a continued adjusted earnings growth of 42%-45%, making it a solid growth stock to invest in.
See More
Trump Considers Exit from Iran War Amid Strait of Hormuz Closure
- War Exit Consideration: President Trump is contemplating an exit from the Iran war even if the Strait of Hormuz remains closed, a decision that could significantly impact U.S. military strategy and diplomatic relations in the Middle East.
- Positive Stock Market Reaction: The stock market surged as investors reacted positively to the potential for peace initiatives from Trump, indicating increased confidence in future geopolitical stability.
- Mixed Oil Price Movement: Despite the stock market rally, oil prices showed mixed results, reflecting concerns over energy supply security amid heightened geopolitical tensions in the Strait of Hormuz.
- Strategic Impact Assessment: Trump's potential decision could alter the U.S. role in the Middle East, affect global energy markets, and lead other nations to reassess their relationships with the United States.
See More
Market Rebounds as Trump Considers Ending Iran Conflict
- Market Rebound: The stock market rebounded in the morning session, with the S&P 500 rising over 1% due to stabilizing oil prices and reports of President Trump's consideration to end military conflict in Iran, alleviating investor concerns about prolonged hostilities.
- Stock Performance: Vertiv (NYSE:VRT) surged 3.5%, Flowserve (NYSE:FLS) rose 3.3%, EMCOR (NYSE:EME) increased by 3.6%, and Terex (NYSE:TEX) jumped 3.9%, reflecting a positive sentiment towards the outlook of these sectors amid geopolitical tensions.
- Terex Volatility: Terex shares have experienced 20 moves greater than 5% in the past year, and today's increase indicates that the market finds the news significant, although it does not fundamentally alter perceptions of the company's performance, suggesting cautious optimism.
- Investment Returns: Despite Terex's 2.8% rise year-to-date, its current price of $56.57 remains 18.6% below its 52-week high of $69.51, presenting a potential buying opportunity for long-term investors, with a $1,000 investment five years ago now valued at $1,228.
See More
