India Data‑Centre Boom Could Outpace Schneider’s Whole Business
Schneider Electric is forecasting that its Indian data‑centre arm will outpace every other segment of the company. The French group expects India’s capacity to grow from ≈1.5 GW to 6–8 GW, potentially making the India unit its largest business within three to five years.
- Strategic push: Deepak Sharma, Managing Director for Greater India, dubbed the opportunity “exponential.”
- Current share: Globally, data centres contribute ~30 % of Schneider’s €40 bn revenue.
- India’s mismatch: 20 % of global data is created and consumed in India, yet it hosts only 3 % of worldwide capacity—fueling a surge in AI projects.
Major AI Projects on the Horizon
| Company | Project | Value |
|---|---|---|
| Visakhapatnam hub | $15 bn | |
| Adani Group | Decade‑long build‑out | $100 bn |
| Microsoft & Amazon | Multi‑tens‑of‑billions programmes | — |
Schneider is positioning itself to supply the power and cooling for these initiatives. Last year it acquired the remaining 35 % of its Indian subsidiary, SEIPL, from Temasek for €5.5 bn, accelerating local decision‑making.
India: Schneider’s Third‑Largest Market
- Employees: ~38,000
- Factories: 31 (exporting to >30 countries)
- Financing impact: €150 m added to 2026 costs
First‑quarter 2026 revenue rose 11.2 % to €9.77 bn, with the energy‑management segment (power & cooling) up ≈13 %.
AI Capital Expenditure
- US hyperscalers’ combined AI capex is projected to exceed $650 bn.
- This fuels long‑dated orders for grid‑to‑rack power equipment that Schneider sells.
India’s Dual Advantage
- Geography: Deployment cost per megawatt is at least 30 % below the global average, driving builders into tier‑two and tier‑three cities.
- Economics: Edge sites for low‑latency AI workloads are the next frontier.
Challenges Ahead
- Commodity costs: Rising copper and silver prices, which Schneider passes on to customers.
- Supply‑chain risks: Potential disruptions from regional conflicts.
- Power availability: Remains a key constraint.
Schneider’s bet is that India will reach 6–8 GW of data‑centre capacity, most of it built by decade’s end, with Schneider equipment powering those sites. Upcoming quarters will reveal whether orders align with this optimistic outlook.
