Schneider Electric bets big on India’s AI-driven data centre boom; expects segment to outpace core business growth

Schneider Electric anticipates that its data centre business in India will significantly outpace the growth of its overall operations in the nation over the next four to five years. This projection is driven by the escalating demand for AI-enhanced infrastructure, according to insights shared by a senior executive at the company. Currently, data centres account for approximately 15-20% of Schneider Electric's business in India and are experiencing double-digit growth. The firm now expects this segment to expand its footprint within its operations considerably in the years to come. Sumati Sahgal, Vice President for Secure Power and Data Centres at Schneider Electric for the Greater India Zone, emphasized that this division will exhibit a much faster growth trajectory compared to the company’s core business. This optimistic outlook aligns with a broader trend as India's data centre industry undergoes rapid expansion, spurred by increasing workloads from AI, heightened cloud adoption, and substantial investments in digital infrastructure. Research firm Astute Analytica projects that the Indian data centre market will reach $31.36 billion by 2035, with a compound annual growth rate (CAGR) of 13.37%. Sahgal noted that the installed data centre capacity in India is expected to rise dramatically, potentially reaching 6-7 gigawatts by 2030, up from the current 1.5 gigawatts. Growth is extending beyond traditional hubs like Mumbai and Chennai, moving into regions such as Gujarat and Rajasthan as operators strive to position infrastructure closer to their customers. This shift is fueled by rising demand from hyperscalers, colocation providers, and various enterprises. Schneider Electric plays a crucial role in this ecosystem by supplying essential data centre infrastructure, including uninterruptible power supply (UPS) systems, switchgear, power distribution units, precision cooling systems, and energy management software. The company believes that the increasing demand for AI computing will further heighten the necessity for effective and reliable power and cooling solutions, positioning India as a key player in both consumption and manufacturing of data centre power and cooling equipment.