Caterpillar Inc. and Vertiv Holdings have announced a strategic collaboration that combines Vertiv’s power distribution and cooling expertise with Caterpillar’s Solar Turbines gas‑turbine technology and other natural‑gas‑powered generators. The joint offering will provide pre‑designed, interoperable architectures that enable data‑center operators to deploy power and cooling systems faster and with lower power‑usage effectiveness (PUE) than traditional, piecemeal solutions.
Vertiv’s Q3 2025 earnings underscored the momentum behind the partnership. The company reported revenue of $2.68 billion, beating analyst estimates of $2.59 billion, and adjusted non‑GAAP earnings per share of $1.24, a $0.24 beat that reflects disciplined cost control and a 60 % year‑over‑year increase in organic orders. Caterpillar’s Q3 2025 results showed sales of $17.64 billion, up 9.5 % YoY, but operating profit margin fell to 17.3 % from 19.5 % the prior year, largely due to tariff‑related manufacturing cost increases. The partnership offers Caterpillar a new revenue stream in a high‑growth segment while leveraging Vertiv’s strong financial performance to offset its own margin pressure.
The collaboration directly addresses the escalating demand for on‑site power and cooling that AI workloads impose on data centers. By integrating Vertiv’s modular power and cooling modules with Caterpillar’s mid‑range gas turbines, the alliance delivers a turnkey solution that reduces time‑to‑power, simplifies deployment, and improves reliability. For customers, the pre‑engineered architecture means lower capital and operating expenses, while the combined expertise positions both companies to capture a larger share of the AI data‑center market, which IDC projects to grow at 28.1 % annually.
Management emphasized the strategic fit. Vertiv CEO Gio Albertazzi said the partnership “is a cornerstone of our Bring Your Own Power & Cooling strategy and aligns seamlessly with our grid‑to‑chip framework by offering resilient, on‑site power generation solutions.” Caterpillar Power & Energy Group President Jason Kaiser noted that “as AI‑driven workloads accelerate, the demand for robust and scalable power infrastructure and cooling is becoming increasingly critical,” adding that electricity demand is projected to rise 43 % by 2035, largely driven by data centers.
Industry analysts view the deal as a timely response to the AI infrastructure boom. AI workloads require significantly higher power density and cooling capacity than traditional data‑center workloads, and Vertiv’s “Data Center Vision 2030” identifies integration, speed, and confidence as key imperatives. Caterpillar’s Solar Turbines division, known for efficient mid‑range gas turbines, complements Vertiv’s modular approach, creating a solution that can be rapidly deployed in new and existing facilities. The partnership is expected to strengthen both companies’ competitive positioning and support future growth in the data‑center and AI sectors.
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