Vertiv has agreed to acquire Utility Innovation Holdings, which operates as UtilityInnovation Group, for approximately $1.45 billion in cash at closing, with the potential for an additional $1.15 billion in cash consideration tied to achieving certain EBITDA targets. The transaction could therefore be worth up to approximately $2.6 billion.
UtilityInnovation Group, or UIG, provides microgrid solutions, advanced power controls, and behind-the-meter power architecture design for data centers. Vertiv said the acquisition is intended to expand its capabilities as AI data center developers increasingly face constraints around obtaining sufficient electrical power.
At the $1.45 billion base purchase price, the acquisition represents approximately 13 times UIG’s expected 2027 EBITDA. Vertiv expects the transaction to be accretive to adjusted earnings per share during the first year following completion.
The acquisition would extend Vertiv’s infrastructure portfolio upstream toward the utility interconnect by adding microgrid controls, onsite generation and energy-storage orchestration, microgrid-specific switchgear, and behind-the-meter power architecture.
Vertiv said these technologies can help data center operators reduce their dependence on lengthy utility interconnection timelines by coordinating onsite generation, energy storage, and grid resources. Power availability has become an increasingly important constraint on AI data center development as operators seek to bring additional computing capacity online more quickly.
UIG has experience designing and delivering microgrid systems for AI data center operators across the United States and Europe. Its generation-agnostic approach allows power architectures to be built around the technologies that can be permitted, fueled, and financed at a particular site.
The company also provides a proprietary controls platform and pre-engineered microgrid switchgear that can orchestrate multiple power sources in real time and coordinate them with a data center’s critical power infrastructure.
The combination is intended to create a coordinated power architecture extending from the source of electricity through the utility interconnect, switchgear, power conversion, distribution, and ultimately computing infrastructure. Vertiv expects this approach to help customers obtain usable power earlier, scale sites beyond the capacity available from the grid alone, and reduce the complexity associated with coordinating multiple infrastructure providers.
Vertiv expects the combined platform to provide customers with faster access to power, less dependence on utility interconnection timelines, greater flexibility to increase site capacity, and a single accountable relationship extending from grid interconnection through rack-level infrastructure.
Founded in 2020, UIG is headquartered in Raleigh, North Carolina, with European headquarters in Dublin, Ireland, and manufacturing operations in North Carolina and New Jersey. Its solutions include proprietary controls software, customized microgrid switchgear, and energy storage.
The acquisition is subject to regulatory approvals and customary closing conditions and is expected to close in the fourth quarter of 2026. J.P. Morgan Securities is serving as financial advisor to Vertiv, with Buchanan Ingersoll & Rooney serving as legal counsel. Morgan Stanley is advising UIG, while Davis Polk & Wardwell is serving as legal counsel.
KEY QUOTES:
“For AI data center operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token. Vertiv has the most complete power and cooling portfolio in the industry. With UIG, we anticipate extending that portfolio upstream to the utility interconnect and onsite power sources, creating a coordinated architecture from source to chip without tying customers to a single generation technology or supplier. Together, we anticipate being better positioned to support grid-connected sites, bridge-to-grid deployments and islanded sites supplied by onsite generation, while reducing complexity from site planning through rack-level deployment. This broader capability can help customers accelerate time to power and, ultimately, time to first token.”
Gio Albertazzi, Chief Executive Officer of Vertiv
“UIG was founded to solve increasingly complex power challenges for data center operators through flexible, technology-agnostic architectures. Vertiv’s global scale, critical infrastructure portfolio and service capabilities make it a strong strategic fit for what we have built. We believe this combination can expand the reach of UIG’s microgrid controls and power architecture expertise and create greater value for customers as power becomes an increasingly critical constraint on data center growth.”
Sidney Hinton, Founder and CEO of UtilityInnovation Group
