Schneider Electric sees India data center business outpacing core growth on AI boom

Schneider Electric expects its India data center business to grow faster than the rest of its local operations over the next four to five years as AI-ready infrastructure demand rises. The company sees capacity expanding beyond Mumbai and Chennai, with new investment flowing into states such as Gujarat and Rajasthan.

Why it matters: - Schneider Electric sees India data centers becoming a much bigger growth driver as AI workloads increase demand for power, cooling and digital infrastructure. - The shift signals that India’s data center buildout is moving beyond the biggest hubs and into newer industrial and customer-adjacent markets. - The company’s footprint across power, cooling, software and services positions it to benefit from that expansion.

What happened: - Schneider Electric expects its India data center business to outpace the company’s broader India operations over the next four to five years. - Sumati Sahgal, vice-president for Secure Power and Data Centres, Greater India Zone, said the business is growing at a double-digit pace. - Sahgal said data centers and grid modernisation will be among Schneider Electric’s strongest growth themes. - The company said data centers account for 15% to 20% of its India business today.

The details: - Schneider Electric expects the data center segment to become a much larger share of its India business over time. - Sahgal said India’s data center capacity could rise to 6-7 gigawatts by 2030 from 1.5 gigawatts now. - Investment is spreading beyond Mumbai and Chennai into states such as Gujarat and Rajasthan. - The company said the expansion is being driven by companies building capacity closer to customers. - Demand is coming from hyperscalers, colocation operators and enterprises that want integrated infrastructure and services. - Schneider Electric supplies UPS systems, switchgear, power distribution units, precision cooling and energy management software. - The company said it covers the full range of data center needs from power and cooling to software and services. - Schneider Electric manufactures locally in India. - Schneider Electric Infrastructure, its India-listed entity, makes electrical distribution equipment including transformers and switchgear. - The broader India business spans energy management, automation and digital infrastructure. - India’s data center market is projected to reach $31.36 billion by 2035, growing at a compounded annual growth rate of 13.37%, according to Astute Analytica.

Between the lines: - AI demand is reinforcing a market already pulling in large-scale infrastructure spending. - Schneider Electric’s emphasis on local manufacturing and an end-to-end product stack suggests the company wants to compete on supply chain depth as well as technology. - The move toward nontraditional data center locations hints at broader power and land availability constraints in the largest metros.

What’s next: - Schneider Electric expects data centers and grid modernisation to remain key growth areas in India. - The company’s India data center business is expected to keep growing faster than its core operations if AI-driven demand continues. - Capacity additions in Gujarat, Rajasthan and other emerging locations will be an important signal for where the next phase of growth concentrates.

The bottom line: - India’s AI infrastructure buildout is turning data centers into a bigger profit engine for Schneider Electric than its traditional business lines.