Analysis of Reddit Claim on Oracle (ORCL) and Vertiv (VRT) Data Center Cooling Efficiency

On 2025-11-18 (EST), a Reddit post argued Oracle (ORCL) data centers have inefficient cooling leading to obsolescence and recommended buying ORCL and VRT puts [Event Context]. This claim contradicts available data: Oracle’s Cloud Infrastructure (OCI) data centers have a Power Usage Effectiveness (PUE) as low as 1.15 (well below the 2025 industry average of 1.54) [0], with 86% renewable energy use globally (targeting 100% by 2025) [0]. Vertiv (VRT), a leader in data center cooling, has 2025 innovations including direct-to-chip liquid cooling for high-density AI racks [1], with case studies like Oxigen Barcelona demonstrating efficient deployment [3]. Industry trends show hybrid liquid-air cooling is becoming standard for AI workloads (addressing the70kW rack limit of air cooling) [7], with new facilities achieving average PUE of1.48 [2].

1. The Reddit claim of inefficient cooling is unsupported: ORCL’s PUE is30% below industry average, and VRT is at the forefront of AI cooling solutions.
2. Strong analyst consensus: ORCL has a 59.5% Buy rating (target $365, +65.5%) and VRT has a94.7% Buy rating (target $196, +18.9%) [5][6].
3. Industry shift: Hybrid cooling is critical for AI scalability, benefiting innovators like VRT [2][7].

• ORCL’s 24% 1-month drop indicates short-term market concerns [5].
• VRT’s high P/E (60x) may pose downside risk if growth slows [6].
• Regulatory changes on data center energy use could impact both companies [2][7].

• ORCL’s progress toward 100% renewable energy and VRT’s AI cooling innovations present long-term growth potential [0][1].

ORCL closed at $220.49 (market cap $618.54B) and VRT at $164.86 (market cap $63.03B) on2025-11-18 [4][5][6]. ORCL’s P/E ratio is 50.08x, VRT’s is60.81x. Both companies have strong positions in the evolving data center infrastructure market, countering the Reddit post’s bearish thesis.