# AI power gear costs more: Vertiv orders doubled, GE Vernova’s backlog hit US$197bn. Amazon reports 29 Oct

> Vertiv's orders more than doubled and GE Vernova's backlog hit US$197bn on 28 October. Building cost per MW is up 21%; Amazon reports on 29 October.

Publisher: DC Market Insights  
Published: 2026-10-29  
Last updated: 2026-10-29  
Page: https://www.dcmarketinsights.com/news/ai-power-gear-costs-more-vertiv-orders-doubled-ge-vernovas-backlog-hit-us197bn-amazon-reports-29-oct

## Key takeaways

- Vertiv's third-quarter sales rose 61% to US$4.31 billion and its organic orders more than doubled; Americas sales rose 74.5% to US$2.99 billion, 69% of the total (Vertiv, 28 Oct 2026; share is our calculation).
- GE Vernova booked US$29.3 billion of orders in the quarter, up 96% organically, and its backlog reached US$196.7 billion, of which US$104.1 billion is equipment (GE Vernova, 28 Oct 2026).
- GE Vernova expects 2026 gas turbine pricing per kW to be about 50% higher than in 2025, and agreed to buy bushing and instrument transformer maker Trench Group for US$9 billion.
- Cushman & Wakefield puts the average all-in cost of a modern US or Canadian data center at US$17.6 million per MW before chips, up 21% since late 2024; power infrastructure is the largest slice, at 21%.
- Microsoft spent US$45.2 billion on capex in its September quarter and said some third-party capacity deliveries were delayed. Amazon reports on 29 October at 5 p.m. ET.

The companies that build the power and cooling plant for AI data centers reported on 28 October, and their numbers say the same thing: demand is still running ahead of factory capacity, so the cost of every megawatt is still going up.

That matters now because the hyperscalers' own results show where the bottleneck sits. Microsoft said on the same evening that its quarterly spending came in lower than planned because third-party capacity arrived late. The money is ready. The transformers, switchgear, chillers and turbines are the constraint, and their makers are pricing accordingly.

**>100%** Vertiv organic order growth, Q3 2026 year on year (Vertiv)

**US$104.1bn** GE Vernova equipment backlog, up about 92% (GE Vernova)

**US$17.6m** Average all-in cost per MW, modern US/Canada data center, excluding chips (Cushman & Wakefield)

## How we got here: a year of rising orders and rising guidance

Vertiv entered 2026 with a US$15.0 billion backlog, up 109%, and a book-to-bill of about 2.9 times in the fourth quarter of 2025, according to its [results filing of 11 February](https://www.sec.gov/Archives/edgar/data/1674101/000167410126000006/exhibit991vrt02112026.htm). At that point it guided 2026 net sales to US$13.25-13.75 billion and organic growth of 27-29%. It also said it would stop reporting orders and backlog every quarter and disclose backlog once a year, [Data Center Frontier reported](https://www.datacenterfrontier.com/machine-learning/article/55357689/vertivs-ai-infrastructure-surge-record-orders-liquid-cooling-expansion-and-grid-scale-power-reshape-data-center-growth).

Eight months later the guidance is US$14.45-14.85 billion, with organic growth of 37-39%. The midpoint has moved from US$13.5 billion to US$14.65 billion, up US$1.15 billion or 8.5% since February (our calculation), and the latest step alone added US$650 million, according to the [company's Form 8-K](https://www.stocktitan.net/sec-filings/VRT/8-k-vertiv-holdings-co-reports-material-event-55484dc60615.html).

The cost side moved the same way. Cushman & Wakefield's 2026 Data Center Development Cost Guide, published on 3 September, found that per-MW construction costs rose an average of 21% since its previous edition at the end of 2024, against general inflation of roughly 5% over the period, [CRE Daily reported](https://www.credaily.com/briefs/data-center-construction-costs-jump-21-since-2024/). The firm puts the average all-in cost of the most modern US and Canadian facilities at US$17.6 million per MW, excluding chips and GPUs, with power infrastructure the largest single category at 21% of greenfield cost, according to its [announcement](https://ir.cushmanwakefield.com/news/press-release-details/2026/Cushman--Wakefield-Releases-2026-Data-Center-Development-Cost-Guide-Citing-21-Rise-in-Per-MW-Construction-Costs/default.aspx).

## What changed on 28 October

**Vertiv.**  Third-quarter net sales were US$4,312.8 million, up 61%, of which 55 points were organic and about 6 points came from acquisitions. Organic orders rose more than 100% year on year. Adjusted operating margin reached 25.2%, up 290 basis points, and adjusted diluted EPS was US$2.21, up 78%. Capital spending tripled to US$139.1 million from US$45.2 million, or about 3.2% of sales (our calculation).

> We are in the middle of the largest infrastructure buildout and it's accelerating.

***Giordano Albertazzi** , Chief Executive Officer, Vertiv — [Vertiv Q3 2026 results, 28 Oct 2026](https://www.stocktitan.net/sec-filings/VRT/8-k-vertiv-holdings-co-reports-material-event-55484dc60615.html)*

The Americas did most of the work. Sales there were US$2,988.8 million, up 74.5% reported and 66.2% organically, against 49.9% growth in Asia Pacific and 22.8% in Europe, the Middle East and Africa.

*Figure 1. Vertiv net sales by region, Q3 2025 and Q3 2026. Q3 2025 values are back-calculated from the reported growth rates (our calculation). Source: [Vertiv Form 8-K, 28 Oct 2026](https://www.stocktitan.net/sec-filings/VRT/8-k-vertiv-holdings-co-reports-material-event-55484dc60615.html).*

On the call, Albertazzi said the order horizon customers are working to is "12, 18 months", that Vertiv is "on track to doubling chiller production capacity by year-end", and that "the mix is definitely moving towards liquid cooling in the market", according to a [call transcript](https://www.tradingkey.com/news/transcripts/262248257-tradingkey). He expected initial 800-volt-to-rack configurations to start producing revenue during 2027, with full native 800-volt systems in customer validation in 2027 and deployed in 2028. He also said Vertiv expects positive price-cost in 2026 "including the current impact of tariffs". Craig Chamberlin declined to give 2027 numbers before the guidance due at the end of the next quarter.

**GE Vernova.**  Orders were US$29.32 billion, up 96% organically, with equipment orders more than doubling, on revenue of US$12.64 billion. Backlog, measured as remaining performance obligations, was US$196.72 billion: US$104.05 billion of equipment and US$92.67 billion of services, according to the [results presentation](https://www.tradingkey.com/news/presentation/262250078-tradingkey). The company raised its 2026 revenue guidance to US$46.5-47.5 billion from US$45.5-46.5 billion and its free cash flow guidance to US$16-17 billion from US$11.5-12.5 billion. The figures are also furnished in its [Form 8-K of 28 October](https://www.sec.gov/Archives/edgar/data/1996810/000199681026000162/gev-20261028.htm).

In the Electrification segment, which makes grid and data center electrical equipment, orders were US$5.37 billion, about 1.4 times revenue of US$3.86 billion, and EBITDA margin rose to 19.1% from 15.1%. North American equipment orders doubled. CEO Scott Strazik said data center orders in the segment have passed US$6 billion so far this year, about US$1.4 billion of it in the third quarter, according to the [call transcript](https://www.tradingkey.com/news/transcripts/262247935-tradingkey). That is about 26% of the quarter's Electrification orders (our calculation).

| 28 October results | Vertiv (cooling and power) | GE Vernova (generation and grid) |
| --- | --- | --- |
| Q3 2026 revenue | US$4.31bn, +61% | US$12.64bn, +18% organic |
| Orders | Organic orders +100%+ (value not disclosed) | US$29.32bn, +96% organic |
| Backlog | US$15.0bn at end-2025 (now reported annually) | US$196.72bn, of which US$104.05bn equipment |
| Margin | Adjusted operating margin 25.2% | Adjusted EBITDA margin 15.4%; Electrification 19.1% |
| 2026 revenue guidance | US$14.45-14.85bn (raised US$650m) | US$46.5-47.5bn (from US$45.5-46.5bn) |
| Capacity move | Doubling chiller capacity by end-2026 | US$9bn Trench Group purchase; new US bushing plant |

Sources: [Vertiv Form 8-K, 28 Oct 2026](https://www.stocktitan.net/sec-filings/VRT/8-k-vertiv-holdings-co-reports-material-event-55484dc60615.html); [Vertiv Q4 2025 results, 11 Feb 2026](https://www.sec.gov/Archives/edgar/data/1674101/000167410126000006/exhibit991vrt02112026.htm); [GE Vernova Q3 2026 presentation](https://www.tradingkey.com/news/presentation/262250078-tradingkey). GE Vernova's presentation gives an Electrification backlog of US$46.15 billion, up 55%; on the call management cited an Electrification equipment backlog of about US$42 billion. The two use different scopes and are not combined here.

## The economics: where the extra cost per MW comes from

The price rises are concentrated in electrical gear. Cushman & Wakefield's guide shows switchgear prices up 60% from December 2021 to early 2026, copper up 46%, generators and motors up 33%, cooling equipment up 32% and transformers up 29%, CRE Daily reported.

*Figure 2. Data center equipment price rises, December 2021 to early 2026. Source: [CRE Daily, citing Cushman & Wakefield's 2026 Data Center Development Cost Guide](https://www.credaily.com/briefs/data-center-construction-costs-jump-21-since-2024/).*

Gas generation is moving faster still. Strazik said GE Vernova's third-quarter gas equipment orders were priced more than 20% above the fourth quarter of 2025, and that full-year 2026 pricing per kW should be about 50% higher than in 2025, although fourth-quarter pricing per kW should dip on product mix. The company shipped 5 GW of gas equipment in the quarter and signed 11 GW of orders and slot reservations, taking contracted gas capacity from 116 GW to 122 GW; it expects at least 130 GW by the end of 2026.

We put the pieces together per megawatt below. The C&W average and the DC Market Insights content figures come from different methods, so they are shown side by side, not added.

| Cost element (per MW of IT load) | Value | Basis |
| --- | --- | --- |
| All-in modern facility, US/Canada, excluding chips | US$17.6m (range US$8.9-23.3m) | Cushman & Wakefield |
| Power infrastructure at 21% of greenfield cost | About US$3.7m | Our calculation from C&W |
| Powered land, primary US markets, 2026 YTD | US$584,000 (+51% year on year) | Cushman & Wakefield |
| Transformers, new data center (2025) | About US$250,000, of which about US$140,000 substation power transformers | DC Market Insights data |
| Transformer bushings at 5-8% of transformer bill of materials | About US$12,500-20,000 | Our calculation from GE Vernova and DC Market Insights |
| Direct-to-chip liquid loop (plates, manifolds, hoses, CDUs) | About US$804,000 | Our calculation: US$261/kW plates x 3.08 (DC Market Insights) |
| Cooling piping: liquid-cooled AI hall vs air-cooled hall | US$190,000 vs US$70,000 | DC Market Insights data |

Sources: [Cushman & Wakefield, 3 Sep 2026](https://ir.cushmanwakefield.com/news/press-release-details/2026/Cushman--Wakefield-Releases-2026-Data-Center-Development-Cost-Guide-Citing-21-Rise-in-Per-MW-Construction-Costs/default.aspx); [CRE Daily, 27 Aug 2026](https://www.credaily.com/briefs/data-center-construction-costs-jump-21-since-2024/) (range); DC Market Insights [transformer](https://www.dcmarketinsights.com/report/data-center-transformer-market), [cold plate](https://www.dcmarketinsights.com/report/data-center-cold-plate-market) and [piping](https://www.dcmarketinsights.com/report/data-center-piping-market) market models. C&W reports an average of US$17.6 million for the most modern facilities; CRE Daily's report of the same guide gives a US$8.9-23.3 million range across markets. Both exclude chips and GPUs.

Scaled to a 1 GW campus, power infrastructure alone is about US$3.7 billion and a direct-to-chip loop about US$0.8 billion (our calculation). The bushings inside its transformers are small money, US$12.5-20 million, but Strazik's point was about control of supply, not cost.

> Bushings generally speaking, are 5% to 8% of the bill of materials of every transformer.

***Scott Strazik** , Chief Executive Officer, GE Vernova — [Q3 2026 earnings call, 28 Oct 2026](https://www.tradingkey.com/news/transcripts/262247935-tradingkey)*

The Trench deal shows what vertical integration now costs. GE Vernova will pay US$9 billion, funded about half in cash and half in new debt, for a business with about US$1.4 billion of 2026 revenue and US$500 million of adjusted EBITDA, forecast to reach US$1.9 billion and US$700 million in 2028. That is about 12.9 times 2028 EBITDA before synergies (our calculation; Strazik said about 13 times). Trench has 11 factories and about US$5 billion of backlog and framework agreements, and its new North Carolina plant will be the first US maker of high-voltage bushings up to 765 kV. Closing is expected in late 2027.

## Lead times: the hidden part of the bill

Price is only half the cost. Cushman & Wakefield's guide lists lead times of 68-113 weeks for pad-mounted transformers, 60-100 weeks for generators and 38-63 weeks for medium-voltage switchgear, CRE Daily reported. At the top of those ranges a transformer ordered today arrives in about 2.2 years (our calculation).

| Equipment | Lead time (weeks) | Years (our calculation) | Price change Dec 2021 to early 2026 |
| --- | --- | --- | --- |
| Pad-mounted transformers | 68-113 | 1.3-2.2 | +29% (transformers) |
| Generators | 60-100 | 1.2-1.9 | +33% (generators and motors) |
| Medium-voltage switchgear | 38-63 | 0.7-1.2 | +60% (switchgear) |

Source: [CRE Daily, 27 Aug 2026, citing Cushman & Wakefield](https://www.credaily.com/briefs/data-center-construction-costs-jump-21-since-2024/). Vertiv and GE Vernova did not give lead-time figures on 28 October; Strazik said only that "lead times across the industry are increasingly important".

Microsoft's results show what those lead times do to a buyer. Capital expenditure in the quarter to September was US$45.2 billion, including US$7.4 billion of finance leases, and roughly three-quarters went on short-lived assets, mainly CPUs and GPUs, CFO Amy Hood said, according to a [call transcript](https://www.tradingkey.com/news/transcripts/262249601-tradingkey). She put calendar-year spending at about US$170 billion.

> Capital expenditures were $45.2 billion as some third-party capacity deliveries we expected in Q1 were delayed.

***Amy Hood** , Chief Financial Officer, Microsoft — [Q1 FY2027 earnings call, 28 Oct 2026](https://www.tradingkey.com/news/transcripts/262249601-tradingkey)*

In our view, that is the clearest sign of where the cost now sits. When the largest buyers are held back by the supply chain, suppliers keep pricing power, and the late capacity is paid for again in lease rates.

## Who gains and who pays

**Equipment makers gain.**  Vertiv's adjusted operating margin rose 290 basis points, and GE Vernova's Electrification margin rose 400 basis points to 19.1%. Both are adding capacity, which Vertiv said is already contributing to third- and fourth-quarter growth.

**Developers and colocation operators pay.**  A 21% rise in cost per MW in under two years, on top of land prices up 51% in a year in primary markets, has to be recovered in rents or absorbed in returns. ConstructConnect counted US$98.5 billion of US data center construction starts across 153 projects through August, with the average project at US$1.18 billion against US$507.4 million in 2025, and a median cost of US$541 per square foot, its [October report](https://news.constructconnect.com/october-2026-data-center-report-spending-reaches-98.5-billion-ytd-construction-costs-rise) shows.

**Hyperscalers pay in time as well as money.**  Microsoft's delayed deliveries move spending, and capacity, into later quarters.

## The wider pattern

The same pressure runs through the deals we covered this month. Venture Global's frame agreements with GE Vernova and Baker Hughes for up to 11.52 GW of gas power islands priced onsite generation at up to about US$1,490 per kW of equipment, as we set out in our [22 October analysis](https://www.dcmarketinsights.com/news/venture-globals-11-5-gw-gas-deal-prices-onsite-power-near-us1500-per-kw-ge-vernova-reports-on-28-october). GE Vernova's 50% gas price rise for 2026 shows why buyers are reserving slots years ahead.

Outside North America, Vertiv's growth is slower but still strong: 48.3% organic in Asia Pacific and 19.3% in EMEA. Our earlier runs today looked at the [cost of building in Europe and the Gulf](https://www.dcmarketinsights.com/news/europe-now-costs-us12-76-a-watt-to-build-data-centres-29-above-the-gulf-eu-rules-close-14-december) and at [how Asia-Pacific campuses are financed](https://www.dcmarketinsights.com/news/banks-lent-a4-25bn-for-one-sydney-campus-us7-5m-per-mw-rate-calls-on-30-oct-and-3-nov-set-its-cost).

### What it means for operators, investors and vendors

Our view, based on the results above:

- **Lock electrical gear first.**  With transformer lead times up to 113 weeks, a 2028 energization needs transformer and switchgear orders placed by early 2027.
- **Budget for cost per MW still rising.**  Use US$17.6 million per MW as the US/Canada average before chips, and stress-test models at the top of the US$8.9-23.3 million range for primary markets.
- **Price liquid cooling in from day one.**  A direct-to-chip loop at about US$804,000 per MW, and piping at US$190,000 instead of US$70,000, is cheaper to design in than to retrofit.
- **Treat onsite gas as a scarce asset.**  With 2026 turbine pricing about 50% above 2025 and GE Vernova aiming for 130 GW contracted by year-end, a reservation slot has value of its own.
- **Investors: watch delivery, not just capex guidance.**  Microsoft's US$45.2 billion quarter shows that supply delays, not budgets, can set the pace of AI capacity.
- **Vendors: capacity is the moat.**  Vertiv doubling chiller output and GE Vernova buying Trench point the same way: the supplier that can ship in 2027 sets the price.

For the market sizing behind these figures, see our [Data Center Transformer Market](https://www.dcmarketinsights.com/report/data-center-transformer-market), [Data Center Cold Plate Market](https://www.dcmarketinsights.com/report/data-center-cold-plate-market) and [Data Center Piping Market](https://www.dcmarketinsights.com/report/data-center-piping-market) reports. For the US rules that shape where this equipment is installed, see our [United States data center power and policy tracker](https://www.dcmarketinsights.com/data/power-policy/united-states).

## What to watch next

- **29 October 2026, 5 p.m. ET:**  Amazon's third-quarter results call, the last of the four largest US hyperscalers to report this season ([Amazon](https://www.aboutamazon.com/md/news/company-news/amazon-earnings-q3-2026-report)).
- **31 December 2026:**  Vertiv's target to have doubled chiller production capacity; GE Vernova's target of at least 130 GW of contracted gas capacity.
- **End of Q4 2026 reporting (early 2027):**  Vertiv's first 2027 guidance and annual backlog figure, which will show whether orders kept pace with the 2026 doubling.
- **2027:**  first revenue from Vertiv's 800-volt-to-rack configurations; native 800-volt systems in customer validation.
- **Late 2027:**  expected closing of GE Vernova's US$9 billion purchase of Trench Group.

## Frequently asked questions

### How much does it cost to build a data center per MW in the US in 2026?

About US$17.6 million per MW on average for the most modern US and Canadian facilities, excluding chips and GPUs, according to Cushman & Wakefield's 2026 guide. That is up 21% since late 2024. Its market range runs from about US$8.9 million to US$23.3 million per MW.

### How fast are Vertiv's data center orders growing?

Vertiv's organic orders rose more than 100% year on year in the third quarter of 2026, and sales rose 61% to US$4.31 billion. Americas sales grew 74.5% to US$2.99 billion. Vertiv raised its 2026 sales guidance to US$14.45-14.85 billion.

### Why are data center equipment prices rising?

Demand is ahead of factory capacity. Switchgear prices rose 60% and transformers 29% from December 2021 to early 2026, per Cushman & Wakefield, and transformer lead times run 68-113 weeks. GE Vernova expects 2026 gas turbine pricing per kW about 50% above 2025.

### How much does liquid cooling add per MW?

DC Market Insights estimates cold plates at about US$261 per kW, and the full direct-to-chip loop at about 3.08 times the plate value, or roughly US$804,000 per MW (our calculation). Cooling piping rises from about US$70,000 per MW in an air-cooled hall to US$190,000.

## Sources

1. Vertiv Holdings Co, Form 8-K and third-quarter 2026 results, 28 Oct 2026 (via StockTitan SEC filings). [Link](https://www.stocktitan.net/sec-filings/VRT/8-k-vertiv-holdings-co-reports-material-event-55484dc60615.html)
2. Vertiv, "Vertiv Announces Date of Third Quarter 2026 Earnings Release and Conference Call". [Link](https://investors.vertiv.com/news/news-details/2026/Vertiv-Announces-Date-of-Third-Quarter-2026-Earnings-Release-and-Conference-Call/)
3. Vertiv, Exhibit 99.1, fourth-quarter 2025 results, SEC, 11 Feb 2026. [Link](https://www.sec.gov/Archives/edgar/data/1674101/000167410126000006/exhibit991vrt02112026.htm)
4. TradingKey, "Vertiv (VRT) Q3 2026 Earnings Call" transcript, 28 Oct 2026. [Link](https://www.tradingkey.com/news/transcripts/262248257-tradingkey)
5. GE Vernova Inc., Form 8-K, SEC, 28 Oct 2026. [Link](https://www.sec.gov/Archives/edgar/data/1996810/000199681026000162/gev-20261028.htm)
6. TradingKey, "GE Vernova Raises 2026 Outlook After Strong Q3, Plans $9 Billion Trench Deal" (results presentation), 28 Oct 2026. [Link](https://www.tradingkey.com/news/presentation/262250078-tradingkey)
7. TradingKey, "GE Vernova (GEV) Q3 2026 Earnings Call" transcript, 28 Oct 2026. [Link](https://www.tradingkey.com/news/transcripts/262247935-tradingkey)
8. TradingKey, "Microsoft (MSFT) FY2027 Q1 Earnings Call" transcript, 28 Oct 2026. [Link](https://www.tradingkey.com/news/transcripts/262249601-tradingkey)
9. Cushman & Wakefield, "Cushman & Wakefield Releases 2026 Data Center Development Cost Guide, Citing 21% Rise in Per-MW Construction Costs", 3 Sep 2026. [Link](https://ir.cushmanwakefield.com/news/press-release-details/2026/Cushman--Wakefield-Releases-2026-Data-Center-Development-Cost-Guide-Citing-21-Rise-in-Per-MW-Construction-Costs/default.aspx)
10. CRE Daily, "Data Center Construction Costs Jump 21% Since 2024", 27 Aug 2026. [Link](https://www.credaily.com/briefs/data-center-construction-costs-jump-21-since-2024/)
11. ConstructConnect, "October 2026 Data Center Report: Spending Reaches $98.5 Billion YTD, Construction Costs Rise", 29 Sep 2026. [Link](https://news.constructconnect.com/october-2026-data-center-report-spending-reaches-98.5-billion-ytd-construction-costs-rise)
12. Data Center Frontier, "Vertiv's AI Infrastructure Surge: Record Orders, Liquid Cooling Expansion and Grid-Scale Power", 16 Feb 2026. [Link](https://www.datacenterfrontier.com/machine-learning/article/55357689/vertivs-ai-infrastructure-surge-record-orders-liquid-cooling-expansion-and-grid-scale-power-reshape-data-center-growth)
13. Amazon, "Amazon will share its Q3 2026 earnings on October 29". [Link](https://www.aboutamazon.com/md/news/company-news/amazon-earnings-q3-2026-report)
14. DC Market Insights, Data Center Transformer, Cold Plate and Piping market models (2026). [Link](https://www.dcmarketinsights.com/report/data-center-transformer-market)