Why Could Data Centres Become Schneider Electric's Largest Business in India by 2030?
India's Data Centre Opportunity Is Accelerating
Schneider Electric expects its data centre business to become its largest business segment in India by 2030, reflecting the country's rapidly expanding digital economy and growing investments in Artificial Intelligence (AI), cloud computing and digital infrastructure.
The company estimates that India could add between 6 GW and 10 GW of new data centre capacity over the coming years. Rising AI workloads, enterprise digitalisation and increasing demand for low-latency computing are expected to drive this expansion.
As AI applications become more compute-intensive, demand is expected to rise not only for data centres but also for electrical equipment, cooling technologies, automation systems and power management solutions.
Key Highlights
🔹 Schneider Electric expects data centres to become its biggest India business by 2030.
🔹 India could add between 6 GW and 10 GW of new data centre capacity.
🔹 AI, cloud computing and digital services are accelerating infrastructure demand.
🔹 Liquid cooling technologies are expected to gain importance for high-density AI workloads.
🔹 Demand for edge data centres is also expected to increase.
🔹 Data sovereignty requirements could further boost domestic infrastructure investments.
Investors following the AI infrastructure theme may also explore our Nifty Future Tip.
Industries Likely to Benefit
| Sector | Potential Benefit |
|---|---|
| Electrical Equipment | Higher demand for switchgear, UPS and power systems. |
| Power Utilities | Growing electricity consumption from AI data centres. |
| Cooling Solutions | Liquid cooling and advanced thermal management. |
| Engineering & EPC | Construction of hyperscale and edge data centres. |
| Cables & Transmission | Expansion of power infrastructure. |
India's growing focus on digital infrastructure, AI adoption and data localisation is expected to create a multi-year investment cycle across several industrial sectors.
Strengths & Weaknesses
|
Strengths
🔹 Strong AI-driven demand. 🔹 Rapid cloud adoption. 🔹 Expanding digital economy. 🔹 Government support for digital infrastructure. |
Weaknesses
🔹 High capital expenditure. 🔹 Large power requirement. 🔹 Cooling challenges. 🔹 Long project execution cycles. |
Companies supplying power equipment, cooling systems, electrical components and engineering services could see sustained order inflows as data centre investments accelerate.
Opportunities & Threats
|
Opportunities
🔹 AI infrastructure boom. 🔹 Hyperscale data centres. 🔹 Edge computing growth. 🔹 Renewable-powered data centres. |
Threats
🔹 Rising electricity costs. 🔹 Water and cooling constraints. 🔹 Technology evolution. 🔹 Regulatory changes. |
Readers may also follow our BankNifty Future Tip for daily market insights.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes India's AI-led data centre expansion is emerging as one of the country's most significant long-term infrastructure themes. Companies involved in electrical equipment, cables, transformers, cooling systems, power generation, transmission and engineering services could benefit as investments in digital infrastructure continue to accelerate.
Related Queries
🔹 Why are data centres growing rapidly in India?
🔹 How does AI increase demand for data centres?
🔹 Which Indian sectors benefit from data centre expansion?
🔹 Why is liquid cooling becoming important?
🔹 Which listed companies could benefit from AI infrastructure growth?
SEBI Disclaimer: This article is for educational purposes only and should not be construed as investment advice. Investors should conduct their own research or consult a SEBI-registered investment adviser before making investment decisions.
