NVIDIA’s H100 chips generate 700 watts of heat. Meta’s AI training clusters pack 24,000 GPUs into single facilities. Microsoft is building data centers at unprecedented pace. The AI boom creates a problem most investors overlook: keeping hardware from melting.
That thermal challenge is where Modine Manufacturing (NYSE: MOD) enters. The company makes cooling systems that keep data centers operational. We examined the competitive landscape to see who’s positioned to benefit as hyperscalers pour billions into AI infrastructure.
The Players in Data Center Cooling
Modine operates through its Climate Solutions segment, which grew 30% in fiscal 2025. The company sells chillers and precision cooling equipment to colocation providers and hyperscalers. Recent moves include expanding manufacturing capacity in Virginia and Mississippi for data center cooling products.
Vertiv (NYSE: VRT | VRT Price Prediction) leads the market in critical digital infrastructure. They provide thermal management, power distribution, and monitoring systems. With $8 billion in revenue and relationships across major cloud providers, Vertiv has scale Modine can’t match. Their thermal solutions are deployed in the largest hyperscale facilities globally.
Johnson Controls (NYSE: JCI) brings building efficiency expertise to data centers. The $23.6 billion industrial giant offers HVAC systems and integrated building management. They’re less specialized than Modine or Vertiv but have distribution reach and customer relationships across enterprise infrastructure.
The demand drivers are NVIDIA (NASDAQ: NVDA), AMD (NASDAQ: AMD), and hyperscalers building capacity. NVIDIA’s data center revenue hit $35.6 billion in Q4 fiscal 2025, up 93% year over year. AMD’s data center segment grew 35.6% in Q3 2025. Those chips need serious cooling.
How Their Businesses Stack Up
Modine’s data center sales reached $644 million in fiscal 2025, up 119% year over year—roughly 24% of total revenue. Management projects data center revenue exceeding $2 billion by fiscal 2028. Vertiv generated $8 billion in total revenue with data center thermal management as a core segment. Johnson Controls has broader commercial HVAC exposure, with data centers representing a smaller but growing slice.
Modine’s advantage is focus. Their chiller technology is purpose-built for high-density computing. CEO Neil Brinker noted on the Q4 call: “We have visibility with some of our customers that go out three to five years.” That’s unusual in industrial equipment. Vertiv counters with incumbency—they’re already installed in facilities that Microsoft (NASDAQ: MSFT) and Meta (NASDAQ: META) are expanding. Switching costs matter when managing 100,000-GPU clusters.
Margin profiles reflect positioning. Vertiv’s operating margin hit 20.5% in recent quarters. Modine’s Climate Solutions segment runs around 21% EBITDA margins. Johnson Controls operates at 15.3% operating margins across their diversified portfolio. The specialized players command better economics.
What Management Is Saying
Modine’s Brinker emphasized execution: “It’s a matter of execution in North America for us. We have tremendous opportunity […] we’re going to add additional capacity and employment in Mississippi to keep up with that demand.”
NVIDIA CEO Jensen Huang framed the infrastructure need on their Q4 call: “With Blackwell, it will be common for these clusters to start with 100,000 GPUs or more. Shipments have already started for multiple infrastructures of this size.” Each cluster generates heat that needs managing. Huang noted Blackwell systems are designed for “air and liquid-cooled data centers,” highlighting cooling complexity.
Vertiv’s Q3 results showed 29% revenue growth with data center infrastructure driving expansion. Vertiv’s stock is up 858% over five years. Modine is up 880% in the same period, though from a much smaller base.
Who’s Best Positioned
Vertiv has the clearest path. They’re embedded in hyperscale infrastructure with proven technology at scale. Their $66 billion market cap reflects investor confidence that data center cooling demand is sustained. The risk is valuation—at 64.86x trailing earnings, you’re paying for significant future growth.
Modine offers more upside if they execute. Their $6.9 billion market cap is a tenth of Vertiv’s, but data center revenue is growing faster (119% versus Vertiv’s 29%). The company is doubling manufacturing capacity over 12 months. Forward P/E of 20x is reasonable if that $2 billion fiscal 2028 target materializes. The risk is execution—scaling production while maintaining margins is challenging.
Johnson Controls is the diversified play. Data center cooling is one growth driver among many. If you want broad industrial exposure with AI infrastructure upside, JCI works. For concentrated thermal management exposure, it’s not the right vehicle.
The Bottom Line
Data center cooling demand is real. NVIDIA’s revenue growth and hyperscaler capex validate the thesis. Vertiv is the established leader with scale and relationships. Modine is the focused challenger with faster growth and room to run. Johnson Controls offers diversified exposure without concentration risk. For investors betting on the thermal bottleneck in AI infrastructure, Modine and Vertiv are the pure plays. Vertiv for safety, Modine for leverage to the buildout.
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