BNP Paribas identifies Vertiv, Eaton as AI cooling winners

According to a BNP Paribas research note titled "Tech Trends That Matter," Vertiv and Eaton are identified as the companies best positioned to gain from increased demand for data center cooling driven by AI infrastructure buildouts. The note attributes the positioning to each company's integrated power-management capabilities combined with advanced cooling-system offerings. BNP Paribas projects that rising AI server rack densities may drive over 20% growth in cooling content per rack and highlights a surge in interest for liquid-cooling solutions. The research note also states that traditional chiller systems are expected to remain essential alongside newer cooling approaches.

Industry-pattern observations: As rack-level power density increases, heat flux per rack rises and air-cooling often becomes insufficient; liquid cooling offers higher heat-transfer efficiency and smaller thermal gradients. Companies supplying both power distribution and thermal management can simplify integration for data center operators, reducing installation complexity and interface risk. Adoption timelines commonly depend on OEM ecosystem support, retrofit complexity, and operator tolerance for liquid-conveyance risk.

BNP Paribas frames the trend as a structural demand tailwind for vendors that can supply integrated power-and-cooling stacks to hyperscalers and large-scale AI buyers. For infrastructure procurement and data center design teams, increased cooling content per rack implies larger up-front capital expenditure for chilled-liquid systems but potential operational benefits through improved PUE and higher usable rack power. Supply-chain constraints for specialized heat-exchange components and coordination with server OEMs are common frictions during ramp phases.

Indicators to follow include reported changes in average rack power density from hyperscalers, public procurement or partnership announcements for liquid-cooling pilots, cooling-content metrics disclosed in OEM/server spec sheets, and quarterly commentary from vendors such as Vertiv and Eaton on orders and product roadmaps. Observers should also track chiller market metrics, since BNP Paribas notes chillers will continue to play a role even as liquid cooling adoption grows.