Vertiv's Services segment generates ~$1.5B in FY2025 revenue from maintenance contracts, monitoring services, and lifecycle management for installed power and cooling infrastructure. This segment is the most predictable part of Vertiv's business: once power and cooling equipment is installed, it requires ongoing maintenance, monitoring, and eventual upgrades. The installed base grows with every equipment sale, creating a naturally expanding annuity stream. Services typically carry higher margins than equipment sales due to the recurring nature and the criticality of uptime for data center operators -- downtime costs for hyperscalers can exceed $100K per hour, making maintenance contracts essential rather than optional. As Vertiv's equipment installed base grows rapidly with the current buildout cycle, services revenue should follow with a 1-2 year lag.
Services revenue is approximately $1.5B in FY2025, representing recurring maintenance and monitoring for Vertiv's installed base of power and cooling equipment