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AI Fuels India Data Center Boom: Schneider Electric Leads
25 May
Summary
- Schneider Electric India data center business expected to outpace core operations.
- AI demand and grid modernization are key drivers for this growth.
- India's data center market projected to reach $31.36 billion by 2035.
Schneider Electric's data center business in India is set to grow faster than its other operations over the next four to five years. This accelerated growth is attributed to the rising demand for AI-ready infrastructure and advancements in grid modernization. Currently, data centers represent 15% to 20% of Schneider Electric's business in India and are expanding at a double-digit rate.
The Indian data center market is forecast to reach $31.36 billion by 2035, with a compounded annual growth rate of 13.37%. Projections suggest India's data center capacity could increase to 6-7 gigawatts by 2030, up from the current 1.5 gigawatts. This expansion is expected to spread beyond major hubs like Mumbai and Chennai to new locations such as Gujarat and Rajasthan.
India is emerging as a significant hub for both the consumption and manufacturing of data center power and cooling equipment. Demand is coming from various sectors, including hyperscalers, colocation operators, and enterprises. Schneider Electric plays a crucial role by supplying essential infrastructure like UPS systems, switchgear, and cooling solutions, while also focusing on local manufacturing.
