Vertiv is going to double production capacity over the next two years. It is doing this to meet the high demand for its products from the data center market. This increase comes from the explosive growth in global data traffic.
Vertiv has been scaling up its production capacity for supplying equipment to data centers for some time. This has mainly involved an increased output of switchgears, busways and integrated modular solutions.
Among other things, Vertiv accomplished this through its acquisition of E+I Engineering in 2021 and PowerBar Gulf. These acquisitions added 1,000 jobs to the supplier last year.
In the past two years, Vertiv’s production capacity increased by more than 100 percent. This came in part from opening new production sites and ramping up capacity at existing locations.
Scaling up production capacity to 2025
Vertiv is now announcing plans to further scale up and double this capacity until 2025. In particular, this involves the production of switchgear, busways and IMS solutions. Other solutions whose production capacity will be increased include thermal management and prefabricated modular solutions.
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This scale-up should take place in core areas and locations. More specifically, these are Vertiv production sites in South Carolina (United States), Mexico, Slovakia, United Arab Emirates, Ireland and Northern Ireland.
Rise of AI helps cause increased demand
The additional production capacity is being used primarily for colocation providers, hyperscalers and AI/HPC applications. Vertiv sees that demand for its own offerings is growing primarily among data center providers.
With this, these providers want to meet the explosive growth in data traffic due, among other things, to the high demand for AI applications at data centers.
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