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

Schneider Electric expects its India data centre business to outpace the growth of its overall operations in the country over the next four to five years as demand for AI-driven infrastructure continues to rise, Reuters reported, citing a senior company executive.

The company said data centres currently contribute 15-20% of its India business and are already growing at a double-digit pace. Schneider Electric now expects the segment to become a much larger share of its India operations in the coming years.

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

Sahgal added that data centres and grid modernisation would emerge as two of the company’s strongest growth themes in India.

The comments come at a time when India’s data centre industry is witnessing aggressive expansion amid rising AI workloads, cloud adoption and digital infrastructure investments. According to research firm Astute Analytica, India’s data centre market is expected to reach $31.36 billion by 2035, growing at a compound annual growth rate (CAGR) of 13.37%.

Schneider Electric expects India’s installed data centre capacity to rise sharply over the next few years.

India’s data centre capacity could surge to 6-7 gigawatts by 2030 from 1.5 gigawatts at present, Sahgal said, adding that investments are now expanding beyond traditional hubs such as Mumbai and Chennai into states including Gujarat and Rajasthan.

The company said operators are increasingly building infrastructure closer to customers as demand rises from hyperscalers, colocation providers, and enterprises.

Schneider Electric supplies key data centre infrastructure including UPS systems, switchgear, power distribution units, precision cooling systems, and energy management software. The company believes AI-driven computing demand will further increase the need for efficient and reliable power and cooling infrastructure.

Sahgal said that India is also emerging as both a consumption and manufacturing hub for data centre power and cooling equipment.