In this article, we will take a look at the top 10 data center cooling companies to invest in.
The unprecedented data center demand driven by massive investments in AI infrastructure is well-documented. According to several research reports, the total data center infrastructure market could reach $1 trillion by 2030. Companies are already trying their best to meet this surging demand.
One example of this was visible during the discussion when Jacobs Solutions CEO Robert Pragada appeared on CNBC on November 24, 2025. He not only confirmed that demand was through the roof but also explained how the industry is operating at capacity, with future growth likely propelled by quantum and life sciences. Regarding future growth, he explained that the quantum buildout could be even larger than the AI infrastructure buildout.
“It’s the synthesis of even more complex energy usage around the next form of computing. So, think AI data centers, and then if there’s a next phase of that, it would be in quantum.”
This complex energy usage will require even better cooling than existing data centers have, keeping demand for cooling solutions high. However, Pragada did point out that investments in quantum technologies were limited to R&D at the moment, but will take over from AI when practical solutions start to emerge.
“There’s a bit of development that still needs to happen before you get to full quantum computing”.
It is clear that data center demand isn’t just a result of increasing AI usage. It is likely to continue well into the future as the next generation of technologies, especially quantum, takes over from AI at some stage.
In other news, Supermicro announced on December 9 that it expanded its Nvidia Blackwell portfolio by launching 4U and 2-OU liquid cooling systems, which capture 98% of system heat through direct-liquid-cooling technology. Developments like these prompt investors to seek out the top data center cooling companies to invest in, where our list can help.
Our Methodology
To identify our top 10 data center cooling companies to invest in, we first searched online for companies that specialize in, or are investing in, data center cooling solutions. We then reviewed data center ETFs for companies that also manufacture their own cooling solutions. We then selected the top 10 stocks with the highest upside potential based on CNN data and ranked them accordingly. Additionally, we also included data on hedge fund holdings in these companies as of Q3 2025 to provide further insight into investor interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top 10 Data Center Cooling Companies to Invest In
10. Vertiv Holdings Co. (NYSE:VRT)
Potential Upside: 7.75%
Number of Hedge Fund Holders: 61
Citigroup issued a significant update on Vertiv Holdings Co. (NYSE:VRT) on December 8. While increasing the price target from $198 to $220, the financial services firm maintained its Buy rating on the stock. This rating was issued by the analyst Andrew Kaplowitz. The newly assigned target price represents an 11.11% upside from current levels. The upward adjustment to the target price indicates that Citigroup still sees potential in Vertiv Holdings Co. (NYSE:VRT).
Vertiv Holdings Co. (NYSE:VRT) completed its acquisition of PurgeRite on December 4th for approximately $1 billion. This acquisition aims to improve the company’s thermal management services capabilities, mainly for AI and high-density computing data centers. The integration is intended to enhance the equipment efficiency and heat transfer and reduce the downtime.
The deal positions Vertiv Holdings Co. (NYSE:VRT) well to capture the emerging market opportunities. Analysts project this year’s revenue at around 28%, similar to the previous year’s 28.76% growth.
Gio Albertazzi, CEO at Vertiv, explained how this acquisition is beneficial for the company:
“PurgeRite’s specialized expertise in fluid management services complements our existing portfolio and enhances our ability to provide end-to-end product and service support for customers’ high-density computing and AI applications.”
Vertiv Holdings Co. (NYSE:VRT) operates as a manufacturer, designer, and servicer of the critical digital infrastructure technology for the communication networks, data centers, and commercial and industrial environments. It provides thermal management products, AC and DC power management products, modular solutions, switchgear and busbar products, management systems, and integrated rack systems.
9. SPX Technologies, Inc. (NYSE:SPXC)
Potential Upside: 9.14%
Number of Hedge Fund Holders: 37
On December 8, the company announced that it had entered into a definitive agreement to acquire Crawford United Corporation (OTC:CRAWA), a Cleveland-based holding company. The deal is valued at approximately $300 million. This acquisition is part of SPX Technologies’ expansion plans. As per the agreement, Crawford United will be merged with a subsidiary of SPX. With this acquisition, SPXC will expand its HVAC capabilities by incorporating the Commercial Air-Handling Equipment segment of Crawford United. This segment contains Rahn Industries and Air Enterprises.
Over the past 12 months ending September 30, 2025, this segment reported $22.8 million in operating profit and $81.6 million in sales. SPX Technologies also reported total revenue of $2.16 billion over the last 12 months, with solid revenue growth of 12.6%.
After the deal closes, SPXC will merge Crawford United’s Commercial Air-Handling Equipment segment with its HVAC segment. Meanwhile, the company intends to divest the Industrial & Transportation Products segment of Crawford United. The reason for its divestiture is that this segment does not align with the firm’s long-term strategy.
Gene Lowe, SPX Technologies President & CEO, highlighted the potential of this acquisition by mentioning:
“Their commercial air-handling business is an excellent fit for our HVAC platform, strengthening our ability to deliver end-to-end solutions to customers in healthcare, universities, pharmaceutical, advanced manufacturing, and commercial markets.”
SPX Technologies, Inc. operates as a supplier of infrastructure equipment to global markets. It mainly serves the cooling (HVAC), heating, ventilation, and detection & measurement markets. The company operates through HVAC and Detection and Measurement segments. It sells its products through retailers, third-party distributors, and independent manufacturing representatives.
