Schneider Electric Expects India Data Center Business to Outpace Core Growth on AI Boom
May 25, 2026
Schneider Electric Expects India Data Center Business to Outpace Core Growth on AI Boom
Schneider Electric expects its India data center business to grow significantly faster than its broader operations in the country over the next four to five years, driven by surging demand for artificial intelligence-ready infrastructure, a senior executive said.
Data centers currently account for 15% to 20% of the company's India business and are expanding at a double-digit pace. Sumati Sahgal, vice president for Secure Power and Data Centres in the Greater India Zone, said in an interview that the segment is poised to become a much larger share of the company's portfolio. "This business will contribute to a much faster pace of growth than what the rest of the core business sees," she said, adding that data centers and grid modernization rank among the company's strongest growth themes.
India's data center market is projected to reach $31.36 billion by 2035, growing at a compound annual growth rate of 13.37%, according to research from Astute Analytica. Sahgal noted that the country's data center capacity could surge to between 6 and 7 gigawatts by 2030, up from 1.5 gigawatts currently, with investment spreading beyond traditional hubs like Mumbai and Chennai into states such as Gujarat and Rajasthan as operators build capacity closer to customers.
The country is emerging as both a consumption and manufacturing hub for data center power and cooling equipment, with demand coming from hyperscalers, colocation operators, and enterprises seeking integrated infrastructure and services, Sahgal added. Schneider Electric supplies critical infrastructure including UPS systems, switchgear, power distribution units, precision cooling, and energy management software, positioning it as a key vendor as AI workloads drive demand for efficient and reliable digital infrastructure. The company covers the full range of data center needs, from power and cooling to software and services, and manufactures locally. Its India-listed entity, Schneider Electric Infrastructure, produces electrical distribution equipment such as transformers and switchgear, while the broader India business spans energy management, automation, and digital infrastructure.
The rapid expansion of AI workloads is reshaping data center design and energy requirements globally, and India is emerging as a key market for this transformation. Schneider Electric's focus on integrated infrastructure and local manufacturing places it at the center of a trend that is expected to accelerate as more enterprises and cloud providers build out capacity in the region.
Source: channelnewsasia
