Archive · 9 Jan 2026
India's Data Center Boom Drives Growth
India is building a lot of new data centers to support its growing digital economy.
This is expected to cost about $30 billion by 2030.
Two companies, Cummins India and Kirloskar Oil Engines, are expected to benefit from this growth.
Cummins is already a big player in providing power solutions for data centers, while Kirloskar is expanding its capabilities in this area.
Both companies are seeing strong financial growth due to the increased demand for reliable power infrastructure in data centers.
This is a big opportunity for both companies to grow their businesses in India.
Mumbai and Chennai are the main cities driving this growth, but other cities like Kolkata, Hyderabad, and Ahmedabad are also seeing a lot of activity.
The growth is being fueled by things like cloud computing, AI, and the rollout of 5G.
India's data center capacity more than doubled in 2025, reaching 387MW IT, with a 103% year-on-year increase.
By 2030, India's total data center capacity is projected to triple, reaching over 4GW IT with a 23% CAGR.
Cummins India's revenue increased by 28% year-on-year to ₹3,122 crore in Q2 FY26, with data centers contributing 40% of its power generation segment revenue.
Kirloskar Oil Engines' revenue grew by 30% year-on-year to ₹1,948 crore in Q2 FY26, focusing on expanding capabilities in the data center market.
Mumbai and Chennai are the primary drivers of demand, accounting for 70% of total absorption in 2025.
- Who
- Cummins India, Kirloskar Oil Engines, Savills India
- What
- Expansion of data center infrastructure in India
- When
- Projected growth by 2026 and 2030
- Where
- India (Mumbai, Chennai, Tier-II cities)
- Why
- Structural factors including 5G rollout, data localization norms, and AI workloads
- Current Data Center Power Capacity
- 1.5 GW
- Projected Capacity by 2026
- 2.1 GW
- Projected Capacity by 2030
- 4 GW
- Estimated Investment by 2030
- $30 billion (₹270,000 crore)
- Cummins Q2 FY26 Revenue
- ₹3,122 crore
- Cummins Q2 FY26 Net Profit
- ₹622 crore
- Kirloskar Q2 FY26 Revenue
- ₹1,948 crore
- Kirloskar Q2 FY26 Net Profit
- ₹159 crore