The artificial intelligence (AI) boom is moving beyond chips and software, creating new opportunities for the companies building the infrastructure behind data centers. Bloom Energy (BE -6.50%) and Vertiv Holdings (VRT -1.41%) are two of the most interesting companies in this segment, and after their recent pullback, investors may wonder which stock offers the better opportunity.
Image source: Getty Images.
Bloom Energy is tackling AI's power bottleneck
Bloom Energy has become one of the more direct ways to invest in the AI power bottleneck. The company's fuel cell systems give data centers a way to generate electricity onsite, letting them come online faster. That matters because power availability is one of the biggest constraints in data center development.
NYSE: BE
Key Data Points
Today, the opportunity only continues to grow. Bloom, for example, expanded its partnership with Oracle to support as much as 2.8 gigawatts of fuel cell capacity, with an initial 1.2 gigawatts already contracted and deployed across Oracle projects. Bloom also expanded its collaboration with Brookfield Asset Management to $25 billion, creating another avenue for financing and deploying its technology across data centers.
The company is also investing in research and development for next-generation AI data centers, including power systems that it says could reduce energy losses, simplify the infrastructure, and lower costs as AI racks consume more power. Management also introduced Power Connect, which it says can significantly shorten the time required to install on-site power.
But while Bloom focuses on generating power for data centers, another company provides the infrastructure to cool them down.
Vertiv is providing the cooling behind the AI building boom
AI data centers are becoming more powerful, so they need better ways to prevent overheating. That's exactly where Vertiv comes in by expanding its liquid cooling capabilities for increasingly powerful AI systems. Its MegaMod HDX platform, for example, combines power infrastructure with liquid cooling, making it perfect for dense AI infrastructure.
It is also involved in Nvidia's AI infrastructure push. The company has been working with the chipmaker on 800-volt DC power systems for next-generation AI factories, while its CoolChip liquid cooling system has been validated for Nvidia's latest designs.
NYSE: VRT
Key Data Points
It is already increasing capacity to meet the surging demand. The company announced a roughly $50 million expansion of its Ohio manufacturing center, a capital expenditure that will increase production of its liquid-cooling and chilled-water systems.
Vertiv is now looking beyond traditional power and cooling equipment. Its planned acquisition of UtilityInnovation Group would expand its capabilities in microgrids and on-site power, giving it another way to benefit from data centers seeking alternatives to an overloaded power grid.
That could become an advantage as grid constraints shape how fast AI data centers can be built. Instead of relying on traditional grid connections, customers could combine them with on-site power, batteries, and microgrids. This strategy gives Vertiv exposure to the broader infrastructure stack.
With this new growth driver, the bull case for the stock has only gotten stronger.
Which stock looks better after the pullback?
Both Bloom Energy and Vertiv offer compelling ways to ride the AI boom. Bloom has the more direct exposure to the growing need for reliable power, while Vertiv offers exposure to the cooling systems that every data center needs. But given its plans to acquire UtilityInnovation Group, its portfolio would expand beyond cooling and into power.
For investors willing to make a more concentrated bet, Bloom may offer more upside if power becomes the defining bottleneck for data centers. But for those who prefer a more diversified pick, Vertiv has the potentially stronger investment case as it expands into a new growth engine. That gives it broader exposure to AI infrastructure and a new total addressable market to enter, offering a unique combination of growth and diversification.
