This 6-9x expansion isn't just a tech story—it's creating a massive order book opportunity for industrial equipment manufacturers that supply the critical power infrastructure behind these facilities. The numbers are compelling: 15 gigawatts of incremental capacity over the next decade, with capital expenditure concentrated in five product categories—switchgear, transformers, UPS systems, cooling units, and cabling infrastructure—that account for 60-75% of total data centre spending.
For GE Vernova T&D India, this growth is already visible in the numbers. The company's order backlog reached ₹21,460 crore by March 2026, representing a 49% increase from December 2025 levels. Total orders for FY26 hit ₹14,776 crore, up 37% year-over-year, with Q4 alone delivering ₹8,614 crore—an impressive 188% surge. While data centre orders currently contribute minimally to the backlog (most existing facilities operate at 220 kV levels), management expects this to change meaningfully as facilities scale to 400 kV and 765 kV levels over the next 4-5 years. InvestorPresentations +4
CG Power & Industrial Solutions is seeing similar momentum. Power Systems order intake grew 51% year-over-year to ₹4,315 crore in FY24, with the unexecuted order book reaching ₹3,731 crore—up 64% from the previous year. The company's landmark ₹900 crore export order from Tallgrass Integrated Logistics Solutions for a US hyperscale data centre project demonstrates its ability to monetize this demand globally. This single order represents the largest in CG Power's history and validates its competitive positioning in the global data centre supply chain. AnnualReports +2
The 15 GW of incremental data centre capacity provides substantial revenue visibility for ABB India, Siemens, and Hitachi Energy India through FY27-FY29. ABB India's order book stands at ₹11,094 crore (+17% YoY)—its strongest ever position—with data centres representing 12-13% of the total. The Electrification business alone has ₹4,211 crore in backlog scheduled for execution over the next 5-6 quarters. InvestorPresentations +3
Siemens maintains a record order backlog of ₹42,300 crore, with approximately 80% of FY27 revenue already secured. Data centres are one of three key verticals contributing 40-50% of the Smart Infrastructure business, which management describes as "growing extremely well." Hitachi Energy India's order backlog reached ₹29,555 crore (+53.6% YoY), with data centre orders growing 1.5-fold in FY25 and continuing to accelerate in FY26. Transcripts +5
India's cost advantage in data centre development—construction costs of USD 6-7 million per MW versus USD 10-18 million in developed markets—creates a powerful foundation for export competitiveness. GE Vernova T&D India has positioned itself as a cost-competitive export base for high-voltage equipment, exporting to 60+ countries with export revenue representing approximately 30% of total revenue.
The company's AIS and GIS manufacturing capabilities are particularly strategic. Recent orders include 765kV/400kV AIS equipment to multiple EPC players and 765kV/420kV/245kV GIS equipment to private developers in Gujarat. Under the "India for the World" strategy, GE Vernova is deepening localization while enhancing competitiveness for high-value export orders, with a strong pipeline including a US RPT order of approximately ₹1,300-1,500 crores and a UK grid order of ₹3,000 crores. InvestorPresentations +3
The increasing proportion of data centre-linked orders is driving significant margin expansion across these manufacturers.
GE Vernova T&D India achieved a record EBITDA margin of 27.2% in Q4 FY26, a dramatic improvement from 3.7% in FY23. Management highlighted that data centre orders provide "better realization of prices for the same products" compared to conventional power generation projects. Transcripts +2
The largely fixed manufacturing cost base enables substantial operating leverage as volumes scale. GE Vernova's margin expansion reflects "dilution of fixed cost on 2x revenue scale," indicating that as revenues have doubled, the fixed cost base has remained relatively stable. ABB India confirmed that data centre orders are "definitely positive for our books as well as on the margin side," with the segment being margin accretive compared to traditional segments. InvestorPresentations +1
Transformers and switchgear account for 15-20% of total capital expenditure in both traditional and AI-focused data centres, creating substantial pricing power for manufacturers. This exposure is driving earnings growth for CG Power, whose Power Systems segment PBIT margin expanded to 21.9% in FY26 from 19.0% in FY25.
For Cummins India, data centres contribute approximately 25% of Power Generation revenue. The company serves the high horsepower segment (2,500 kVA and above), which typically commands better margins. Management noted that all data centre customers recognize Cummins' "brand advantage and reliability promise," with the data centre pipeline building out very well for the next 3-4 years. Transcripts +3
The competitive landscape supports sustained order inflow. ABB India, Siemens, Hitachi Energy India, GE Vernova T&D India, CG Power, and Cummins command more than 40% market share in relevant segments. Limited supply capacity in critical equipment categories further strengthens order backlogs and revenue visibility. Transcripts +1
GE Vernova T&D India has a backlog exceeding 3x last year's revenue, while Hitachi Energy India targets capturing 30% of India's data centre spending (up from its earlier 10-15% target) through comprehensive "grid-to-rack" power solutions.
Nomura projects a 31-32% earnings per share CAGR for CG Power between FY26 and FY29, reflecting the company's exposure to hyperscale data centre investments. The brokerage maintained a "Buy" rating with a target price of ₹920/share, citing "strong power systems momentum expected to drive high earnings growth over FY26-29." Q4 FY26 performance validated this projection, with consolidated revenue up 25% YoY to ₹3,441 crore and net profit rising 32.5% to ₹363 crore.
For GE Vernova T&D India, consensus analyst targets range from ₹3,531 to ₹4,545, supported by strong financial performance (Q4 PAT up 89% YoY to ₹352 crore), record order backlog, and data centre demand providing better price realization. The company is forecast to grow earnings and revenue by 21.8% per annum, with return on equity forecast to reach 38.2% in 3 years.
The mix of domestic data centre orders and export opportunities is enhancing earnings quality and sustainability. Domestic orders provide stable, long-term visibility with strong utility relationships, while export opportunities offer higher margins, currency diversification, and geographic risk mitigation. Premium pricing and multi-year order backlogs are expected to significantly improve return on capital employed for ABB India, Siemens, and Hitachi Energy India through operating leverage, margin expansion, and asset efficiency gains. InvestorPresentations +2
India's data centre market, valued at $5.55 billion in 2025, is projected to reach $13.11 billion by 2034. This growth, combined with the country's 40-60% cost advantage in data centre development, positions Indian manufacturers as key beneficiaries of the global hyperscale expansion. The companies that have invested in capacity expansion, technology leadership, and export capabilities are well-positioned to capture this opportunity while delivering sustained earnings growth and improving returns on capital.
