Vertiv Holdings will establish a manufacturing base in Johor, Malaysia. The plan, announced on the 1st (local time), is part of a strategy to expand production capacity in response to the rapidly growing demand for artificial intelligence (AI) and high-density computing infrastructure in the Asian region. The new facility will serve the entire Asian region, including Southeast Asia, North Asia, Australia, and New Zealand. Johor is evaluated as having excellent accessibility to major technology companies and customer bases, as well as superior logistics connectivity.

CEO's Strategic Intent

CEO Giordana Albertazzi explained the background of this decision as follows. He first stated that "Asia is one of the markets where investment in AI and digital infrastructure is expanding the fastest," and added, "By expanding our manufacturing footprint in Malaysia, we expect to simultaneously provide customers with quality, production speed, supply stability, and large-scale manufacturing capabilities." He also emphasized, "As AI infrastructure continues to evolve through generations, customers need a partner capable of reliably supplying power, cooling, and integrated infrastructure," and stressed, "The Johor facility will become a key hub supporting the long-term growth of the Asian market."

Role and Capabilities of the Manufacturing Facility

The new factory is designed to have capabilities spanning from the production to assembly and large-scale performance testing of advanced thermal management and power infrastructure products. Vertiv expects this to enable the verification of quality and shortening of deployment timelines for high-density infrastructure solutions supplied to AI data centers, cloud, and colocation facilities. In particular, production capabilities for the following product lines will be expanded:

• Vertiv CoolChip Coolant Distribution Unit (CDU): Supports direct-to-chip liquid cooling and rear-door heat exchangers.
• Vertiv Power Module: A modular power infrastructure.
• Vertiv Power Skid: A modular power infrastructure component.
• Vertiv SmartRun: A prefabricated infrastructure system integrating power, liquid cooling piping, and busways.

The company explained that through these solutions, power system deployment time can be reduced by up to 50% and on-site integrated infrastructure installation time by up to 85% compared to conventional methods. In addition, a dedicated testing facility will be built within the site to validate liquid cooling systems and power equipment under conditions similar to actual customer environments. The plan is to simultaneously test multiple power modules and cooling systems to enhance product reliability.

Future Schedule

The Johor manufacturing facility will gradually ramp up operations with a target of full-scale operation by 2027. Once operational, it is expected to create hundreds of new skilled jobs locally. This investment is expected to serve as a key hub supporting Vertiv's global production strategy aimed at expanding power and cooling infrastructure supply capabilities in line with the proliferation of AI data centers.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and the final decision and responsibility for investing lie with the investor.]