India's Data Centers: Cooling Pipes Drive ₹2 Lakh Crore Boom

India's data center capacity is set to surge dramatically, with projections indicating a nearly six-fold increase to approximately 10.5 GW over the next five years. This expansion is expected to attract substantial investment, estimated between ₹2-2.3 lakh crore in the coming decade.

This growth fuels demand for specialized infrastructure components, notably stainless steel piping systems and specialized hoses essential for liquid cooling. Venus Pipes & Tubes is enhancing its capabilities by integrating into value-added pipe spooling, a process that reduces on-site installation time and project risk for data center clients.

Aeroflex Industries is focusing on integrated Secondary Fluid Network (SFN) solutions, combining piping systems, flexible hoses, and expansion joints. The company is scaling its capacity for skid assemblies and stainless-steel flexible hoses to meet hyperscale demand.

Both companies are strategically positioned to capitalize on this evolving market. Venus Pipes aims for higher EBITDA margins through spooling, while Aeroflex leverages its international presence and growing domestic demand for complete cooling solutions.

Venus Pipes reported strong quarterly revenue growth in Q1FY27, despite higher depreciation costs. Aeroflex Industries also achieved record quarterly performance, with significant net profit growth driven by hyperscale export demand for its SFN liquid cooling skid assemblies.