India's data centre boom could create a huge opportunity for power companies, says Hitachi Energy

India’s data centre sector is poised for explosive growth, with capacity projected to expand from less than 2 gigawatts today to 13-15 gigawatts by 2030. This surge is fueled by rising demand for artificial intelligence, cloud computing, and government-mandated data localization, according to N Venu, Managing Director and CEO for India and APAC at Hitachi Energy. The company sees a major opportunity in supplying critical power infrastructure, including grid connections, transformers, and uninterruptible power solutions. Around 10-15% of total data centre capital expenditure falls within Hitachi Energy’s addressable market, with its newly launched 'grid-to-rack' portfolio further expanding its offerings inside data centre facilities. A key challenge remains ensuring near-perfect reliability, with data centres requiring 99.99% availability. Venu emphasized that while India’s power costs are competitive and renewable energy capacity is growing, consistent electricity supply will be equally critical. Technologies like High Voltage Direct Current (HVDC) systems and advanced grid solutions will be essential to meet these demands. India’s cost advantages, expanding green energy capacity, and improving power infrastructure position it as a potential global data centre hub. Hitachi Energy’s investments in local manufacturing, including HVDC production launched in 2022, align with India’s push for higher equipment sourcing, giving the company a competitive edge. The company’s shares have risen nearly 95% over the past year, with a market capitalization of around ₹1,57,108 crore. Venu also highlighted the need for 2-3 HVDC projects annually to manage the growing complexity of India’s power grid as renewable energy integration accelerates. As India’s digital economy expands, the convergence of data centres, reliable power infrastructure, and local manufacturing presents a significant long-term growth opportunity for the sector.