How to Play VRT Stock as Vertiv Acquires King Environmental Services

Since artificial intelligence (AI) burst onto the scene a few years ago, the technology’s explosive popularity has put a spotlight on companies positioned to benefit from the AI infrastructure boom, and Vertiv Holdings (VRT) is one name that has increasingly grabbed investors’ attention. Vertiv has carved out a niche as a developer of equipment that keeps data centers up and running. The company does not make chips. Instead, it focuses on the critical infrastructure behind them, including power systems, cooling solutions that keep compute hardware running around the clock, and specialized racks integrated into data centers.

As a result, Vertiv’s long-term growth story is closely tied to the rapid adoption of AI and the massive capital expenditures being poured into data centers. The liquid-cooling company returned to focus on Thursday after announcing that it had entered into an agreement to acquire King Environmental Services, a Europe-based provider of fluid management, commissioning, and load-testing services for high-density, liquid-cooled data centers and other applications.