Schneider Electric anticipates that its India data center operations will become one of its most rapidly expanding segments in the coming four to five years, fueled by increasing investments in AI-capable infrastructure and the expansion of digital capacity nationwide.

The firm stated that data centres now account for approximately 15 to 20 percent of its operations in India, but this sector is growing at a double-digit rate and is anticipated to capture a much larger portion in the upcoming years.

Sumati Sahgal, vice-president of Secure Power and Data Centres at Schneider Electric’s Greater India Zone, stated that the demand tied to artificial intelligence tasks, cloud computing, and digital services is transforming infrastructure investments throughout India.

“This venture will lead to a significantly quicker growth rate compared to the rest of the core business,” Sahgal noted, emphasizing that data centres and grid modernization are emerging as vital growth drivers for the company.

India's data centre sector has been experiencing swift growth as companies, hyperscalers, and colocation providers enhance infrastructure to accommodate increasing data usage and AI technologies.

Estimates mentioned in the report suggest that India's data centre market may hit $31.36 billion by 2035, expanding at a compound annual growth rate exceeding 13 percent.

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The nation's current data centre capacity is expected to increase significantly from approximately 1.5 gigawatts to between 6 and 7 gigawatts by 2030.

Although cities like Mumbai and Chennai continue to be major data centre centers, the next stage of growth is progressively extending into states such as Gujarat and Rajasthan as operators aim to create infrastructure nearer to users and reduce geographic concentration.

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Schneider Electric provides a diverse array of essential tools for data centres, such as uninterruptible power supply systems, switchgear, cooling systems, power distribution units, and energy management software.
The organization asserts that the adoption of AI is generating new requirements for dependable and energy-efficient infrastructure as businesses implement more compute-intensive tasks.

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The company indicates that India is increasingly emerging as a key manufacturing hub for data centre equipment, with rising local demand bolstering the domestic production of power and cooling systems.