Schneider Electric sees strong growth in India’s data centre business

Schneider Electric expects its India data centre segment to significantly outpace overall business growth over the next few years, driven by AI workloads, cloud expansion and rising demand for advanced power and cooling infrastructure nationwide.

Schneider Electric has said its data centre business in India is set to grow at a faster pace than its overall operations over the next four to five years, driven by surging demand for artificial intelligence-led infrastructure and digital transformation.

According to reports, citing a senior company executive, the segment is already expanding at a double-digit rate and currently contributes around 15–20% to Schneider Electric’s India business. The company expects this share to increase significantly as demand accelerates in the coming years.

“This business will contribute to a much faster pace of growth than what the rest of the core business sees,” said Sumati Sahgal, Vice-President for Secure Power and Data Centres, Greater India Zone at Schneider Electric.

She added that data centres and grid modernisation are expected to become two of the most important growth drivers for the company in India, supported by rising investments in digital infrastructure and energy systems.

AI, cloud growth driving infrastructure demand

The outlook comes at a time when India’s data centre industry is expanding rapidly, supported by increased adoption of cloud services, artificial intelligence workloads, and large-scale enterprise digitalisation. Industry estimates suggest strong long-term growth potential in the sector.

Research firm Astute Analytica projects that India’s data centre market could reach $31.36 billion by 2035, growing at a compound annual growth rate (CAGR) of 13.37%. This expansion is expected to significantly boost demand for power management and cooling solutions.

Schneider Electric also anticipates a sharp rise in India’s installed data centre capacity. The country’s capacity could grow from around 1.5 gigawatts currently to 6–7 gigawatts by 2030, driven by new infrastructure investments and expanding digital consumption.

Expansion beyond traditional data centre hubs

Sahgal noted that investments are increasingly moving beyond established locations such as Mumbai and Chennai, with newer infrastructure development emerging in states like Gujarat and Rajasthan. Operators are building closer to end users to reduce latency and improve efficiency.

The company highlighted that demand is being driven not only by hyperscale cloud providers but also by colocation operators and enterprise customers looking for scalable and resilient infrastructure.

Schneider Electric, which provides critical data centre solutions including UPS systems, switchgear, power distribution units, precision cooling technologies and energy management software, believes AI will further intensify the need for reliable and efficient power systems.

The company also sees India emerging as both a major consumption market and a manufacturing base for data centre equipment, particularly in the power and cooling segment, reinforcing the country’s growing role in the global digital infrastructure ecosystem.