AI boom fuels Schneider Electric India growth

Schneider Electric expects its India data centre business to grow faster than its broader operations over the next four to five years, driven by rising demand for artificial intelligence (AI) ready infrastructure and digital services. The company said data centres already contribute 15 per cent to 20 per cent of its India business and continue to grow at a double-digit pace, supported by increasing investments in cloud computing and artificial intelligence infrastructure.

Sumati Sahgal, vice-president for Secure Power and Data Centres, Greater India Zone, said the company sees strong opportunities in both data centres and grid modernisation as India accelerates investments in digital infrastructure.

AI demand drives data centre expansion

India’s data centre industry is witnessing rapid growth due to rising demand for artificial intelligence, cloud computing and digital services. Companies are increasing investments in infrastructure that can support high-performance computing and energy-intensive AI workloads.

Sahgal said India’s data centre capacity could increase to between 6 gigawatts and 7 gigawatts by 2030, compared with about 1.5 gigawatts currently. The expansion is expected to spread beyond traditional hubs such as Mumbai and Chennai into newer locations including Gujarat and Rajasthan.

Industry players are increasingly building facilities closer to customers to improve service delivery and reduce latency.

India emerging as manufacturing hub

Schneider Electric also sees India becoming an important manufacturing base for data centre power and cooling equipment. The company said demand is coming from hyperscalers, colocation providers and enterprises seeking integrated infrastructure solutions.

The company manufactures key products locally and provides a wide range of infrastructure solutions for data centres. These include uninterruptible power supply systems, switchgear, power distribution units, precision cooling systems and energy management software.

As AI adoption increases, demand for efficient cooling and reliable power systems is also rising. Data centres require advanced infrastructure to maintain performance while managing energy use and operational costs.

Schneider Electric said its integrated approach allows it to support customers across the full lifecycle of a data centre project, from power and cooling systems to software and maintenance services.

Focus on energy management and digital infrastructure

The company’s India-listed arm manufactures electrical distribution products, including transformers and switchgear. Schneider Electric’s wider India business also covers energy management, industrial automation and digital infrastructure solutions.

India’s growing digital economy is creating long-term demand for modern electrical infrastructure, particularly as businesses adopt AI technologies and cloud-based services at a faster pace.

Industry experts expect investments in data centres to continue rising as global technology companies expand their India presence and local businesses increase digital operations.

Schneider Electric’s focus on local manufacturing, integrated infrastructure and energy-efficient systems positions the company to benefit from the next phase of India’s data centre expansion.

India shaping global AI era

Recently, OpenAI CEO Sam Altman had positioned India at the centre of the global AI landscape, stating that the country was not only adopting AI at scale but actively shaping its future. Speaking at the AI Impact Summit, Altman had revealed that more than 100 million people in India used ChatGPT every week, with students making up over a third of that user base. He had described India as the fastest-growing market for Codex, OpenAI’s coding agent, and said the country was well placed to lead the world in AI development and deployment.