Vertiv’s 2025 Liquid Cooling Strategy: Dominating the AI Data Center Market

Industry Adoption: How Vertiv Capitalized on the Shift to Liquid Cooling for AI

Between 2021 and 2024, Vertiv laid the strategic groundwork to transition from a traditional data center infrastructure provider to a specialist in high-density thermal management. The period was characterized by foundational moves recognizing that traditional air cooling was becoming inadequate for server racks exceeding 20 kW. Vertiv began by embracing partnerships with innovators, such as the 2021 alliance with Green Revolution Cooling (GRC) for immersion cooling solutions. A pivotal moment came in December 2023 with the acquisition of CoolTera Ltd., a specialist in coolant distribution infrastructure. This move was not just a capacity expansion but a strategic acquisition of critical patents and intellectual property, signaling a definitive pivot toward owning the liquid cooling technology stack. These early actions were a response to a nascent but clear trend: the rise of AI workloads demanded a fundamental change in data center cooling.

The period from January 2025 to today marks a dramatic inflection point where Vertiv’s foundational strategy translated into market dominance. The speculative trend of 2021-2024 became an explosive market reality, evidenced by Vertiv reporting a 60% year-over-year increase in organic orders in Q3 2025. This acceleration was met with a rapid-fire launch of a comprehensive commercial portfolio. Products like the Vertiv™ CoolLoop Trim Cooler, the 240 kW Vertiv™ CoolCenter Immersion system, and a trio of Coolant Distribution Units (CDUs) up to 600kW moved the company from offering solutions to selling a productized, scalable portfolio. The variety of these offerings—from direct-to-chip to immersion and hybrid systems—shows that the market is no longer debating *if* it needs liquid cooling, but *which type* is best for specific AI deployments. Vertiv’s ability to offer this full spectrum, backed by a new global Liquid Cooling Services division launched in February 2025, has positioned it as the go-to architect for the AI data center buildout.

Table: Vertiv’s Strategic Investments in Data Center Cooling Capabilities

Table: Vertiv’s Ecosystem of Strategic Alliances for Data Center Cooling

Geography of Vertiv’s Liquid Cooling Expansion

Between 2021 and 2024, Vertiv’s geographic focus was on building a global manufacturing and delivery backbone. Key actions included the 2021 investment to expand its prefabricated modular (PFM) data center facility in Croatia, enhancing its ability to serve the EMEA market. In North America, the 2022 relocation of its U.S. headquarters to a modern Ohio facility was aimed at fostering domestic innovation. The strategy began to show targeted regional expansion with the May 2024 contract to supply a massive order of 364 CRAH units and 58 chillers to Scala Data Centers across Latin America (Brazil, Chile, Colombia), indicating a move to capture growth in emerging hyperscale markets. The September 2024 opening of a new manufacturing facility in Monterrey, Mexico, further solidified its North American production capabilities, positioning it to serve the U.S. market more efficiently.

From 2025 onwards, Vertiv’s geographic strategy has shifted from general capacity building to highly targeted, strategic market penetration driven by specific AI initiatives. The United States is a primary focus, highlighted by the July 2025 partnership with nuclear innovator Oklo to develop advanced power and cooling solutions for U.S. hyperscalers. The collaboration with Caterpillar, announced in November 2025, also aims to address grid constraints that are particularly acute in North American data center hubs. Simultaneously, Vertiv is aggressively pursuing other key global AI markets. The October 2025 partnership with Ezditek to develop AI-ready solutions in Saudi Arabia and the November 2025 collaboration with IIT Bombay in India demonstrate a clear intent to establish a leadership position in the Middle East and Asia’s rapidly growing digital economies. This targeted approach shows that liquid cooling is becoming mainstream not just in established markets but as a foundational technology for new builds in high-growth regions.

Technology Maturity of Vertiv’s Liquid Cooling Solutions

In the 2021–2024 period, Vertiv’s strategy centered on validating liquid cooling technologies and acquiring key capabilities. The technology was moving from niche R&D to viable commercial pilots. The 2021 partnership with GRC brought a commercially ready single-phase immersion cooling solution into Vertiv’s portfolio. The collaboration with Intel in late 2023 to develop and test a pumped two-phase (P2P) direct-to-chip system for the Gaudi3 accelerator, handling up to 160kW per rack, represented an advanced pilot phase for next-generation cooling. The acquisition of CoolTera in December 2023 was a critical validation point, bringing proven coolant distribution unit (CDU) technology and IP in-house and marking a shift from partnering for technology to owning it. During this phase, liquid cooling was proven effective but was still being integrated and tested for specific high-density use cases.

The period from 2025 to today represents the commercial scaling and mass-market productization of Vertiv’s liquid cooling technologies. The technology is no longer in pilot but is being deployed at scale as a diverse product suite. Vertiv launched a string of commercial-grade products, including the Vertiv™ CoolPhase Flex hybrid system, the Vertiv™ CoolCenter Immersion system supporting up to 240kW, and multiple CDUs with capacities up to 600kW. This demonstrates a move from custom solutions to standardized, off-the-shelf products. The ultimate validation of maturity is the February 2025 launch of a global Liquid Cooling Services portfolio; companies only build dedicated service arms for technologies that are being deployed at commercial scale. Furthermore, the collaboration with NVIDIA to co-develop a reference architecture for its 2027 Rubin Ultra platforms signals that liquid cooling is now considered a baseline requirement for future AI infrastructure, cementing its transition from an emerging technology to an industry standard.

Table: SWOT Analysis of Vertiv’s Data Center Liquid Cooling Business

Forward-Looking Insights and Summary

The data from 2025 clearly signals that Vertiv is successfully executing a multi-pronged strategy to become the indispensable infrastructure backbone of the AI revolution. The year ahead will be defined less by strategic positioning and more by operational execution. The primary signal to watch is the integration of the $1 billion PurgeRite acquisition; its success will determine how quickly Vertiv can scale its most advanced liquid cooling solutions for its largest hyperscale clients. The market should also closely monitor the development of the 800 VDC power and cooling portfolio aligned with NVIDIA’s roadmap, set for release in H2 2026. This launch will be a critical validation point of Vertiv’s ability to stay in lockstep with the world’s leading AI chipmaker.

Looking forward, the collaboration with Oklo to explore nuclear-powered cooling, while long-term, represents a paradigm shift in data center sustainability and efficiency. Any pilot project announcements in this area would signal a major breakthrough. In the near term, Vertiv’s organic order flow for liquid cooling solutions will remain the most direct indicator of its market share capture. The company has moved beyond selling components to architecting entire power and thermal ecosystems. The challenge is no longer proving the technology’s value but delivering it at the speed and scale the AI industry demands. For executives and investors tracking the competitive landscape of the data center ecosystem, monitoring these specific commercial and technological milestones is crucial. A dedicated market intelligence platform can provide the granular analysis needed to benchmark competitors and identify emerging opportunities in this dynamic sector.

Frequently Asked Questions

Why did Vertiv pivot to specializing in liquid cooling?
Vertiv pivoted because it recognized that traditional air cooling was becoming insufficient for the high-density server racks used for AI workloads (often exceeding 20 kW). The rise of AI created explosive demand for a new thermal management approach, and Vertiv strategically positioned itself to lead this transition, moving from a general infrastructure provider to a specialist.

What were Vertiv’s most important strategic moves to build its liquid cooling business?
Key moves included the 2023 acquisition of CoolTera Ltd. to gain critical patents and IP for coolant distribution units (CDUs), and the $1 billion acquisition of PurgeRite Intermediate in 2025 to scale its capabilities for hyperscale AI clients. Additionally, a crucial partnership was formed with NVIDIA in 2025 to co-develop power and cooling for next-generation AI platforms.

How is Vertiv’s product portfolio equipped to handle different types of AI deployments?
Vertiv developed a comprehensive and productized portfolio to address the market’s need for different types of liquid cooling. Its offerings include direct-to-chip solutions, single-phase immersion cooling systems (like the Vertiv™ CoolCenter up to 240kW), and hybrid air/liquid systems (like the Vertiv CoolPhase Flex). This allows customers to choose the best solution for their specific AI deployment rather than being limited to a single technology.

How is Vertiv addressing the energy and power grid challenges associated with the AI boom?
Vertiv is tackling energy challenges through innovative partnerships. It collaborated with Caterpillar to create integrated modular power and cooling solutions to alleviate grid strain. It also partnered with Oklo Inc. to explore using heat from small modular nuclear reactors to power its cooling systems, and with Tecogen to offer natural gas-powered chillers as an alternative energy source for cooling.

According to the SWOT analysis, what is the biggest challenge Vertiv faces going forward?
The analysis shows that Vertiv’s primary challenge has shifted from proving the technology to operational execution. With a 60% year-over-year increase in organic orders, the main risk is managing the immense demand and scaling its supply chain and manufacturing to deliver large-scale, global deployments without compromising on quality or timelines.