Caterpillar Inc. and Vertiv Holdings Co. announced a joint venture that will supply end‑to‑end power and cooling solutions for artificial‑intelligence data centers. The deal combines Vertiv’s proven power‑distribution and cooling equipment with Caterpillar’s Solar Turbines gas‑turbine technology and combined‑cooling‑heat‑and‑power (CCHP) expertise, creating pre‑designed, interoperable architectures that can be deployed faster and run more efficiently than traditional, piecemeal installations.
Caterpillar’s Q3 2025 financial results show a 10% increase in revenue to $17.6 billion, driven by a 25% year‑over‑year rise in its Energy & Transportation segment. The company’s adjusted operating profit margin fell 250 basis points to 17.5%, largely because of higher manufacturing costs and tariff exposure that eroded profitability. Despite the margin squeeze, the company’s cash‑flow generation remained robust, and management highlighted that the margin decline is temporary as supply‑chain pressures ease.
Vertiv reported Q3 2025 net sales of $2.676 billion, a 29% jump from the prior year, powered by a 60% increase in organic orders for its power‑and‑cooling platforms. Adjusted operating margin expanded to 22.3%, up 220 basis points, thanks to operational leverage from higher sales volumes and improved procurement efficiencies. Vertiv raised its full‑year guidance for net sales and adjusted operating profit, signaling confidence in sustained demand for AI‑centric infrastructure.
The partnership aligns with Caterpillar’s strategy to broaden its Energy & Transportation portfolio into the data‑center market, leveraging its global dealer network to support new service opportunities. For Vertiv, the collaboration strengthens its “Bring Your Own Power & Cooling” strategy and positions the company to capture the growing need for on‑site, resilient power generation that reduces grid dependence for AI workloads. Together, the firms aim to lower power‑usage effectiveness (PUE) and shorten time‑to‑power for customers, addressing a critical bottleneck in high‑density AI deployments.
Gio Albertazzi, Vertiv CEO, said the collaboration “is a cornerstone of our grid‑to‑chip strategy, enabling customers to deploy reliable, on‑site power generation that improves PUE and reduces grid risk.” Jason Kaiser, Caterpillar’s Group President of Power & Energy, added that the joint offering “will accelerate deployment and provide a scalable, integrated solution that meets the evolving needs of AI‑driven data‑center operators.”
The announcement comes amid a surge in demand for high‑density data‑center infrastructure, as AI workloads push power and cooling requirements to new levels. Operators are increasingly turning to on‑site generation to avoid grid constraints and improve reliability, making the combined expertise of Caterpillar and Vertiv a timely and attractive proposition for the market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.