Data Centers Powering India's Cable Boom

India's expansive wires and cables industry, valued at ₹1 lakh crore, is witnessing a new surge in demand driven by the acceleration of Artificial Intelligence and cloud infrastructure, particularly from data centers. Each megawatt of data center capacity requires an estimated ₹3.5 crore in specialized cables, creating a substantial market opportunity projected to reach ₹57,400 crore over the next six to eight years. This growth is supported by structural demand identified by CRISIL, which forecasts industry volume growth of 10% and revenue growth of 28-30%.

Among the key players poised to benefit are R R Kabel, Polycab, and HFCL. R R Kabel reported a 54% revenue increase in Q1FY27, with its Wires & Cables segment growing by 57% and data centers identified as a crucial medium-term driver. Polycab, India's leading cable manufacturer, saw its revenue grow by 39% in Q1FY27, with data centers expected to generate a ₹20,000 to ₹25,000 crore market opportunity over the next 6 to 8 years. HFCL, a leader in optical fiber cables, reported a 120% revenue surge in Q1FY27, driven by hyperscaler data centers and expanding its optical fiber capacity significantly.

These companies are strategically enhancing their capacities and product portfolios to meet the evolving demands of the digital infrastructure sector. R R Kabel is investing ₹1,200 crore, largely in its cable business, while HFCL is expanding its optical fibre and optical fibre cable capacities and backward integrating into preform manufacturing. Polycab continues to leverage its market leadership and distribution network, anticipating sustained broad-based demand and faster growth in its FMEG business. The increasing investment in data centers and digital infrastructure across India and globally presents a significant tailwind for these firms.