The surge in Vertiv's market value underscores the environmental impact of the AI boom. The computing power required by AI is so great that the facilities providing it need to use even more energy to cool themselves down. Air cooling accounts for about 40% of data centers' massive and steadily growing electricity consumption, making it a significant part of AI's environmental problem. Despite the environmental concerns, Vertiv's CEO, Giordano Albertazzi, expressed optimism about the company's future due to the accelerating demand that AI is driving to the entire data center industry.
Key takeaways:
- Vertiv Holdings, an Ohio-based cooling company, has seen its stock value rise by more than 860 percent since the end of 2022, beating out Nvidia as the most explosive AI investment in the U.S.
- Vertiv's market value has surged due to the rise of AI and its unprecedented compute needs, which require extensive cooling.
- Air cooling accounts for roughly 40 percent of data centers' massive and steadily growing electricity consumption, contributing to AI's environmental problem.
- Despite the environmental concerns, Vertiv's CEO Giordano Albertazzi is optimistic about the future, citing the acceleration of demand that AI is driving to the entire datacenter industry.