Vertiv or Modine: Which Company Leads in AI Data Center Cooling Stocks?

AI Fuels Data Center Growth and Infrastructure Innovation

The rapid advancement of artificial intelligence is accelerating the expansion of data centers, putting increased emphasis on the need for robust cooling and power systems. As computational demands intensify, these facilities must adopt sophisticated solutions to manage greater heat output and maintain operational stability. Among these, efficient cooling has become a critical factor shaping how quickly major cloud providers can scale their operations.

This evolving landscape is opening new avenues for companies that deliver the essential infrastructure supporting today’s data centers. Vertiv Holdings and Modine Manufacturing Company are two notable firms poised to capitalize on this surging demand.

Vertiv stands out as a top supplier of integrated power and thermal management systems for data centers, offering advanced liquid-cooling technologies tailored for high-performance computing. In parallel, Modine is intensifying its focus on thermal management, building a rapidly expanding cooling business that could significantly influence its future growth, despite its smaller size.

While both companies are set to benefit from the AI-driven infrastructure boom, their strategies differ. Vertiv leverages its scale and comprehensive infrastructure offerings, whereas Modine’s strength lies in its agile, fast-growing cooling segment.

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Vertiv: Scaling Up for AI Infrastructure

Vertiv is experiencing robust growth as large-scale cloud providers increase investments in AI infrastructure. In the fourth quarter of 2025, Vertiv’s organic orders soared by 252% compared to the previous year and jumped 117% from the prior quarter. The company ended 2025 with a backlog of approximately $15 billion—more than double the previous year—offering strong revenue visibility.

The nature of Vertiv’s contracts is also shifting, with the company securing more system-level deals that bundle power and cooling components into unified solutions for entire data centers. These comprehensive projects typically yield higher profit margins.

Vertiv is expanding its presence within each project through offerings like SmartRun, a prefabricated system that speeds up the deployment of power and cooling infrastructure, and OneCore, an end-to-end platform designed for large-scale AI computing needs.

Additionally, Vertiv is advancing deployment technologies, such as its Digital Twin platform, which enables simulation and optimization of data center builds. Integrated with OneCore, this technology helps reduce deployment times and lowers total ownership costs.

Strategic partnerships are further enhancing Vertiv’s position in the AI ecosystem. Collaborations with companies like Hut 8 and NVIDIA underscore Vertiv’s growing influence in supporting high-density computing environments.

To keep pace with rising demand, Vertiv is expanding its manufacturing capabilities and strengthening its supplier relationships to efficiently convert its backlog into revenue.

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Modine: Accelerating Growth in Data Center Cooling

Modine’s data center division is gaining significant traction. In the third quarter of fiscal 2026, the segment’s sales climbed 31% sequentially. Management anticipates continued momentum, projecting quarterly data center revenues to surpass $400 million in the fourth quarter.

Looking beyond immediate gains, Modine’s order pipeline provides strong visibility, with record bookings across chillers and other data center products extending demand forecasts out nearly five years. Many of these contracts are structured as long-term supply agreements.

Leadership expects the data center business to expand by 50-70% annually over the next two fiscal years. The company plans to have the necessary capacity in place by the end of fiscal 2027, with further chiller production lines scheduled for fiscal 2028.

Modine’s current capital strategy positions it to potentially support up to $3 billion in data center revenue over time.

The company is also transforming its portfolio through a Reverse Morris Trust transaction, merging its Performance Technologies unit with Gentherm Incorporated. Once finalized—expected in the fourth quarter of 2026—Modine will emerge as a focused Climate Solutions provider, targeting high-growth markets like data centers and commercial HVAC.

Profitability is expected to rise as well, with Modine targeting Climate Solutions margins of 20-23% by fiscal 2027, driven by operational leverage and a shift toward higher-margin applications as data center volumes increase.

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Conclusion: Choosing Between Vertiv and Modine

Both Vertiv and Modine are well-positioned to benefit from the rapid expansion of AI-powered data center infrastructure. Vertiv’s extensive scale, integrated solutions, and substantial backlog provide strong visibility and reinforce its role in supporting high-density computing environments, especially with its deep relationships among hyperscalers and expanding manufacturing base.

Modine, by contrast, is a more specialized player in thermal management, with its fast-growing data center cooling business offering the potential for outsized growth from a smaller foundation. Strong order intake and long-term contracts signal sustained demand, while Modine’s ongoing transformation into a pure-play Climate Solutions company sharpens its focus on high-growth segments like data center cooling.

Investors seeking exposure to the booming AI data center infrastructure market can find compelling opportunities in both companies. The choice may hinge on whether one prefers the scale and diversification of Vertiv or the accelerated growth potential of Modine’s specialized approach.

With management forecasting robust growth in data center revenues and improving margins as volumes rise, Modine currently presents a particularly attractive near-term growth story.