Company Aims to Capture Up to 30% of Total Data Centre Spending Through End-to-End Power Infrastructure Solutions

As India's digital economy accelerates, power technology major Hitachi Energy India is positioning itself to play a much larger role in the country's rapidly expanding data centre industry. The company has announced plans to target nearly 30% of the overall spending in India's data centre market, significantly raising its ambitions from its earlier estimate of 10–15%.

The move comes at a time when India is witnessing unprecedented growth in cloud computing, artificial intelligence (AI), digital services, and enterprise data storage. These trends are driving massive investments in data centre infrastructure across the country.

Riding the Data Centre Growth Wave

India's data centre market is projected to witness robust expansion over the next decade. Industry estimates suggest the sector, valued at approximately $5.55 billion in 2025, could grow to more than $13 billion by 2034. Increasing internet penetration, rising demand for digital services, AI adoption, and government-led digital transformation initiatives are expected to fuel this growth.

Recognizing the opportunity, Hitachi Energy India is focusing on delivering comprehensive power solutions designed specifically for energy-intensive data centre operations.

Grid-to-Rack Solution Expands Market Opportunity

A key component of the company's strategy is its "grid-to-rack" offering, an integrated power infrastructure solution that covers the entire electricity supply chain within a data centre ecosystem.

The solution spans from grid connectivity and power transmission to electrical distribution systems that supply power directly to server racks. By providing end-to-end power management capabilities, the company believes it can significantly expand its addressable market within the data centre segment.

Management expects this approach to add another 10–15% of infrastructure spending opportunities, helping the company increase its participation in the sector's overall investment cycle.

Major Investment Push in India

To support future growth, Hitachi Energy India recently announced a ₹2,000 crore investment in a new greenfield large power transformer manufacturing facility in Gujarat. The latest investment takes the company's cumulative capital expenditure commitment in India to approximately ₹4,000 crore.

The company currently operates 19 factories spread across eight manufacturing locations and continues to strengthen its domestic production capabilities to meet rising demand from power, industrial, and digital infrastructure sectors.

Strong Order Book Signals Healthy Demand

Hitachi Energy India ended FY2026 with a record order backlog of ₹29,600 crore, highlighting strong demand across its core business segments. Growing investments in renewable energy integration, grid modernization, transmission infrastructure, and data centres are contributing to the robust pipeline.

The company remains optimistic about India's long-term power infrastructure requirements as electricity demand continues to rise.

Exploring Strategic Acquisitions

In addition to organic expansion, the company is actively evaluating acquisition opportunities across data centre technologies, digital infrastructure services, power consulting, and related segments. These potential acquisitions are expected to help strengthen capabilities and fill technology gaps as customer requirements become more complex.

India's Rising Power Demand Creates Long-Term Opportunity

India's peak power demand recently touched a record 270.8 gigawatts, reflecting the country's growing energy needs. Industry forecasts indicate that demand could reach nearly 458 gigawatts by 2032, driven by economic growth, industrial expansion, electrification, and digital infrastructure development.

For companies like Hitachi Energy India, this trend presents a significant long-term opportunity. As data centres become increasingly critical to India's digital economy, reliable and efficient power infrastructure will remain a key investment priority, placing power technology providers at the center of the country's next phase of growth.