Schneider Electric is doubling down on India’s data centre market, expecting it to outgrow its entire global business. The company’s India division aims to become its largest unit within five years. That’s no small claim, considering Schneider pulls in around €40 billion annually worldwide.

India’s installed data centre capacity stands at roughly 1.5 gigawatts today. The government and industry plan to push this to between six and eight gigawatts by 2030. That’s a fourfold jump—one of the fastest expansions anywhere. The country generates about 20% of global data but houses only 3% of the world’s data centre capacity. The gap is glaring.

Hyperscalers like Google, Microsoft, Amazon, and domestic giants like Adani are pouring billions into AI-ready data centres. Google alone is investing $15 billion in Visakhapatnam. Adani plans a $100 billion build-out over a decade. These projects need power, cooling, and digital infrastructure—precisely Schneider’s wheelhouse.

Schneider’s India unit recently became wholly owned by the parent company after buying out Temasek’s 35% stake for €5.5 billion. This move aims to speed local decision-making amid soaring demand. India is now Schneider’s third-largest market, with 38,000 employees and 31 factories. Its exports reach over 30 countries, including the US.

The company’s first-quarter 2026 revenue rose 11.2% organically to €9.77 billion. Its energy management segment, supplying data centre power and cooling, jumped nearly 13%. Schneider expects data centres to remain a growth engine, fueled by AI infrastructure investment that could exceed $650 billion globally in the coming years.

Energy Transition Meets Data Centre Surge

India’s data centre boom collides with an urgent energy transition. Electricity demand in India grows over 6% annually, driven by urbanisation, industrial expansion, and digital adoption. At the same time, India targets 60% non-fossil fuel power capacity and a 47% reduction in emissions intensity by 2035.

Schneider recently expanded its SE Advisory Services in India to help companies manage this complexity. The service offers AI-powered strategy, digital tools, and project execution to accelerate decarbonisation and improve energy resilience. Schneider sees energy, automation, and digital systems converging, making integrated solutions essential.

SE Advisory Services focuses on risk management, resource optimisation, and operational resilience. It helps businesses tackle energy market volatility, cybersecurity risks, and climate challenges. This end-to-end approach supports sustainable growth amid tightening regulations and rising cost pressures.

Challenges in a Hot Market

India’s data centre expansion isn’t without hurdles. Power supply remains a bottleneck, especially as AI workloads demand more electricity and ultra-low latency. Cooling in India’s hot climate consumes vast water volumes, raising environmental concerns. Some proposed data centre hubs sit in heat-stressed districts where water is scarce.

Hardware costs add pressure. Schneider flags rising copper and silver prices, along with plastics and transport risks tied to geopolitical tensions in West Asia. These costs pass through to customers but tighten margins.

Still, India offers a compelling cost advantage. Deployment costs per megawatt run about 30% below global averages. This shifts new builds beyond traditional metro hubs toward tier-two and tier-three cities, often closer to renewable energy sources and edge computing demand.

Global Growth with Local Ambition

Schneider’s global data centre business accounts for roughly 30% of total revenue. The India unit is poised to claim a bigger slice of that pie. With new manufacturing capacity underway in North America and acquisitions strengthening cooling solutions, Schneider is positioning for long-term infrastructure growth worldwide.

In India, the company’s evolution from electrification hardware provider to strategic energy partner is clear. It’s orchestrating a future where grid-to-chip energy management meets AI-powered intelligence. The next five years will test whether orders keep pace with the ambitious announcements. If they do, Schneider Electric’s India bet could pay off handsomely.