Schneider Electric anticipates rapid growth in India’s data center sector, driven by the AI surge.

Schneider Electric anticipates rapid growth in India’s data center sector, driven by the AI surge.
Schneider Electric anticipates that its data center operations in India will exceed the growth of its overall business in the country over the next four to five years, fueled by a rising demand for AI-oriented infrastructure, as stated by a senior executive.

Currently, data centers represent 15% to 20% of Schneider Electric’s operations in India and are experiencing double-digit growth. Sumati Sahgal, vice-president for Secure Power and Data Centres in the Greater India Zone, mentioned in a recent Reuters interview that the company expects this segment to capture a significantly larger share in the future.

“This sector is poised to grow at a much quicker rate compared to the rest of our core business,” Sahgal remarked, noting that both data centers and grid modernization will be among the company’s key growth areas.
The market for data centers in India is projected to hit $31.36 billion by 2035, with a compound annual growth rate of 13.37%, according to Astute Analytica. Sahgal indicated that India’s data center capacity could increase to 6-7 gigawatts by 2030, up from the current 1.5 gigawatts, with investments expanding beyond Mumbai and Chennai into regions like Gujarat and Rajasthan as companies establish closer capacities to their customers.

India is becoming a significant hub for both the consumption and manufacturing of data center power and cooling equipment, meeting the demand from hyperscalers, colocation providers, and enterprises looking for integrated infrastructure and services, she added.

Schneider Electric provides essential data center infrastructure, comprising UPS systems, switchgear, power distribution units, precision cooling solutions, and energy management software, placing it as a key provider as AI workloads create a need for efficient and reliable digital infrastructure.

The company addresses all aspects of data center requirements, including power, cooling, software, and services, and produces its products locally.

Schneider Electric Infrastructure, its entity listed in India, manufactures electrical distribution components such as transformers and switchgear, while its broader operations in India encompass energy management, automation, and digital infrastructure.

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