Oracle's AI data centers need power; Vertiv, Caterpillar step up

Oracle's commitment to AI data centers is part of its broader push to expand Oracle Cloud Infrastructure and provide computing power for training and running AI models. This spending spree is not just about chips; it requires massive amounts of power and cooling, which is where industrial companies like Vertiv and Caterpillar come in. Vertiv, for instance, has announced four new or expanding factories to increase capacity for power management and infrastructure products, and a $50 million investment in Ohio to expand production of liquid-cooling and chilled-water systems. Caterpillar, on the other hand, supplies natural gas generators and turbines for on-site power, and has announced a $725 million expansion of its large-engine manufacturing footprint. The two companies have also announced a collaboration to combine their equipment into integrated solutions.

The stakes here hinge on whether the demand for AI computing continues to grow as expected. If it does, Vertiv and Caterpillar could see continued order growth. However, if grid connections become faster or if demand slows, the picture could change. For now, both companies are investing to meet the demand they see. The Ironton factory expansion, expected to be operational in the second quarter of 2027, is one concrete milestone to watch.