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French energy management giant Schneider Electric anticipates its Indian data center division to grow faster than its remaining operations over the coming four to five years, Reuters reports, citing Sumati Sahgal, the firm’s vice president for Secure Power and Data Centers. The segment already makes up to 20% of the company’s footprint in India, expanding at a double-digit rate as operators invest heavily in energy-management systems, cooling, switchgear, power backup, and distribution networks required to run AI-ready facilities.
“This business will contribute to a much faster pace of growth than what the rest of the core business sees,” Sahgal told the newswire, highlighting that alongside grid modernization, data centers will be a primary growth engine for Schneider in the country. Investment is moving beyond Mumbai and Chennai into Gujarat and Rajasthan as hyperscalers, colocation operators, and enterprises build closer to users and look for integrated infrastructure.
The buildout is widening: India is projected to see its data center capacity surge from roughly 1.5 GW today to 7 GW by 2030. The broader market is on track to hit an estimated INR 3 tn (USD 31.36 bn) by 2035, according to Astute Analytica data picked up by the newswire.
Power layer: Domestic conglomerate Reliance Industries recently outlined plans to invest INR 1.6 tn (USD 17 bn) into a 1.5 GW data center hub in Visakhapatnam, complete with battery storage and captive renewable energy. This underscores a growing trend in which AI data infrastructure is increasingly planned around power availability, storage, and grid resilience.
Why it matters: The AI boom is extending its roots deep into cooling, power, and grid reliability — mirroring the infrastructure scale-up currently underway across the Gulf as local data capacity, AI, and sovereign clouds gain traction. In India, Schneider’s projected growth signals a broader supply-chain narrative. The expansion of data centers will drive intense demand for precision cooling, UPS systems, switchgear, transformers, and energy-management software, moving the spotlight beyond servers and cloud providers.
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