Hitachi Energy India has significantly raised its ambitions in India's data centre market, targeting 30% share of total spending compared to its previous aim of 10-15%. According to Managing Director and CEO Venu Nuguri, as reported by Reuters, the company plans to achieve this through its comprehensive "grid-to-rack" power solution that integrates power infrastructure from grid-level connection to server rack-level distribution. This expanded target represents a doubling of the company's addressable market in the data centre segment, with the solution expected to add another 10-15% of power infrastructure spending to Hitachi Energy India's total addressable market in the data centre segment.
India's data centre capacity is experiencing faster-than-expected growth, with installed capacity potentially reaching the upper end of the projected 5-8 GW range by 2030 from around 1.5 GW currently, according to international brokerage firm Bernstein. The brokerage noted that the ongoing Middle East crisis is accelerating interest in India's data centre ecosystem, with demand for land and power infrastructure emerging as key determinants of future growth. Data centre construction costs, excluding compute infrastructure, stand at around ₹50 crore per MW in India, which is lower than comparable costs in the United States. The industry is increasingly shaped by a simple framework: land and power availability, with access to substations and power connectivity becoming increasingly critical as developers race to secure capacity.
This week, Hitachi Energy India announced a ₹2,000 crore ($210.53 million) investment in a greenfield, large power transformer facility in Gujarat, bringing its cumulative capital expenditure to ₹4,000 crore across 19 factories in eight manufacturing locations. The company closed 2026 with a record order backlog of ₹29,600 crore, demonstrating strong market demand for its power equipment and grid technology solutions. As a unit of Zurich-based Hitachi Energy, the company controls about half of India's high-voltage direct current (HVDC) market and manufactures equipment for transmitting bulk electricity over long distances.
India's peak power demand reached a record 270.8 gigawatts in May, representing a 68% increase from 148 GW in 2014, according to the Ministry of Power. Demand is projected to nearly double to 458 GW by 2032, creating a structural tailwind that Nuguri identified as a key growth driver. Bernstein identifies Adani Group and Reliance Industries as best positioned to benefit from this expansion, citing their access to land, power infrastructure and transmission networks. The Adani Group holds a significant advantage as India's largest renewable energy producer with a land bank of more than 1,000 acres in Panvel, while Reliance Industries has around 0.5 million acres of land holdings and more than 5,000 acres in Navi Mumbai. Competition for land in Navi Mumbai has intensified significantly, with transaction values rising above previous benchmarks.
