Vertiv Holdings Co. (VRT) and Caterpillar Inc. (CAT) unveiled a strategic partnership on Tuesday that tackles one of the biggest headaches in AI infrastructure: getting enough reliable power where you need it, when you need it.

The collaboration centers on what Vertiv CEO Gio Albertazzi calls their "Bring Your Own Power & Cooling" strategy—essentially helping data centers generate their own electricity on-site rather than relying on an already-strained public grid. Albertazzi described the partnership with Caterpillar and its subsidiary Solar Turbines as a "cornerstone" of this approach, aiming to deliver resilient power generation solutions that reduce or completely eliminate grid dependence.

Here's how it works: Caterpillar and Solar Turbines bring their expertise in power generation, including natural gas turbines and reciprocating engines that can handle both electric power and thermal energy through Combined Cooling, Heat, and Power (CCHP) systems. Vertiv contributes its full portfolio of cooling and power distribution products, packaging everything as modular, pre-designed blocks that significantly compress design cycles.

The joint effort addresses a pressing challenge as AI data centers demand increasingly massive amounts of consistent power and cooling. By offering pre-designed architectures that integrate power generation with cooling and distribution systems, the companies promise to optimize performance while simplifying deployment and accelerating the critical metric of time-to-power.

What customers get is a fully integrated solution with validated performance and interfaces, allowing them to design and install infrastructure considerably faster than cobbling together components from multiple vendors. The Memorandum of Understanding represents what both companies see as a pivotal step in helping customers overcome energy constraints that have become major bottlenecks in deploying optimized AI centers.

Price Action: VRT shares were trading lower by 1.07% to $164.88 at last check Tuesday. CAT was down 1.57%.