Home / Business and Economy / Vertiv Weathers Tariff Costs, Preps for Data Center Growth Spurt
Vertiv Weathers Tariff Costs, Preps for Data Center Growth Spurt
21 Aug
Summary
- Vertiv's sales guidance outpaces profit growth due to tariffs, investment
- Momentum building in data center market, driven by AI demand
- Vertiv partnering with Nvidia on power systems for next-gen data centers
As of August 21st, 2025, data center infrastructure company Vertiv (NYSE: VRT) is navigating a period of strong sales growth, but its profit increases are being constrained by the impact of tariffs and accelerated investment.
Vertiv's full-year guidance for 2025 shows its sales projections outpacing the growth in adjusted operating profit. This is due to the additional costs associated with tariffs, as well as the firm's decision to pull forward investment in research and development to fuel future expansion.
However, the underlying momentum in Vertiv's business remains robust. The data center market is experiencing a surge in demand, driven by the rapid growth of artificial intelligence applications. This trend is expected to drive a multi-year expansion in data center spending, which bodes well for Vertiv's involvement in developing power systems and solutions for the next generation of data centers, in partnership with Nvidia.
Provided the tariff environment does not worsen, Vertiv's future orders and revenue increases are likely to translate into significant profit and cash flow growth. The company is well-positioned to capitalize on the thriving data center market and continue its upward trajectory, despite the near-term headwinds from tariffs and increased investment.
