Data centre giant Vertiv acquires US microgrid specialist in $1.45bn cash deal
Vertiv has agreed to acquire UtilityInnovation Group, a US microgrid and power systems firm, for approximately $1.45 billion in cash, in a deal aimed at helping data centre operators secure power faster as grid constraints slow AI infrastructure rollouts globally.
The New York-listed critical infrastructure firm said the acquisition, announced on September 2, carries additional consideration of up to $1.15 billion tied to earnings targets over the next 12 and 24 months. At the base purchase price, the deal values UIG at roughly 13 times its expected 2027 earnings before interest, taxes, depreciation and amortisation, a multiple Vertiv said would fall significantly if the full earnout is paid. The company expects the transaction to add to its adjusted earnings per share within the first year of completion.
UIG, founded in 2020 and headquartered in Raleigh, North Carolina, designs microgrid controls, onsite power generation systems and behind-the-meter architecture for data centres, with additional operations in Dublin, Ireland, and manufacturing sites in North Carolina and New Jersey. The acquisition extends Vertiv’s power and cooling portfolio upstream from the data centre itself to the point where it connects to the electricity grid, adding capabilities in onsite generation, energy storage orchestration and microgrid-specific switchgear.
“For AI data centre operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token,” said Vertiv chief executive Gio Albertazzi. He said the addition of UIG’s technology would allow the company to support grid-connected sites, bridge-to-grid deployments and fully islanded sites running on their own power generation, without tying customers to a single energy technology or supplier.
UIG founder and chief executive Sidney Hinton said the company was built to solve power challenges for data centre operators through flexible, technology-agnostic designs, adding that Vertiv’s scale and service network made it a strong fit for the business he had built.
Power availability has become one of the biggest bottlenecks in data centre expansion as AI workloads drive unprecedented demand for electricity, pushing power architecture decisions earlier into the site-planning process. Vertiv said UIG’s behind-the-meter design work typically begins before equipment is even selected, allowing the combined company to help shape a site’s power blueprint from the outset rather than retrofitting capacity later.
The deal is subject to regulatory approval and customary closing conditions, and is expected to close in the fourth quarter of 2026. J.P. Morgan Securities is advising Vertiv on the transaction, with Buchanan Ingersoll & Rooney serving as legal counsel. Morgan Stanley is advising UIG, with Davis Polk & Wardwell as its legal counsel.
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