Archive · 29 Jul 2026
India's AI Data Centre Boom Drives Cable Industry Growth
India's wires and cables industry is growing because of the increasing need for data centres, which are powered by AI and cloud technology.
Three companies, R R Kabel, Polycab, and HFCL, are leading this growth.
R R Kabel is expanding its cable business, Polycab is using its market leadership, and HFCL is focusing on optical fibre.
The data centre boom is expected to create a big market opportunity worth ₹57,400 crore over the next few years.
Each company has a different strategy to capture this growth, and the pace of investments will determine their success.
India's wires and cables industry is growing due to the expansion of data centres driven by AI and cloud infrastructure.
The data centre segment could generate a ₹57,400 crore incremental market over the next six to eight years.
R R Kabel, Polycab, and HFCL are leading companies in this growth, each with distinct strategies.
Polycab leads through scale and market leadership, R R Kabel is expanding capacity, and HFCL is leveraging optical fibre expertise.
The pace of data centre investments and capacity expansion will determine the success of these companies in capturing the market opportunity.
- Who
- R R Kabel, Polycab, HFCL
- What
- India's wires and cables industry is experiencing growth due to the expansion of data centres driven by AI and cloud infrastructure.
- When
- The growth is projected over the next six to eight years.
- Where
- India, with potential exports to the US.
- Why
- The increasing demand for data centres is creating a significant market opportunity for specialised cables.
Optimistic Growth Projections
Cautious Market Expansion
Market Growth Potential
Optimistic Growth Projections
The data centre segment could generate a ₹57,400 crore incremental market over the next six to eight years, driven by increasing AI adoption and cloud infrastructure expansion.
Cautious Market Expansion
The pace of data centre investments and execution on capacity expansion will determine who captures the biggest share of this evolving market.
Company Strategies
Optimistic Growth Projections
Polycab leads through scale and market leadership, R R Kabel is expanding capacity to capture project demand, and HFCL is leveraging its optical fibre expertise to strengthen its position in digital infrastructure.
Cautious Market Expansion
Not every company will benefit equally from the data centre boom, and the industry is entering a new growth phase with varying levels of success.
- Industry Size
- ₹1 lakh crore
- Incremental Market Opportunity
- ₹57,400 crore
- Data Centre Capacity Growth
- 16.4 GW over 6-8 years
- Cable Demand per MW
- ₹3.5 crore
- Polycab's Market Share
- Leading player in the W&C industry
- HFCL's Optical Fibre Capacity
- 339 lakh fibre kilometres per annum
- R R Kabel's Capex
- ₹1,200 crore (FY26-FY28)
- HFCL's Order Book
- ₹26,665 crore (Q1FY27)