Global brokerage Nomura reports that India’s datacentre sector is entering a significant growth phase, propelled by increasing digitalisation, cloud adoption, and heightened demand linked to artificial intelligence. CG Power and GE Vernova T&D India have been identified as top investment choices within this sector.
Nomura’s analysis suggests that India’s datacentre industry could achieve a compound annual growth rate (CAGR) exceeding 30% between calendar years 2025 and 2030, surpassing the broader APAC market. This positions India as one of the fastest-growing datacentre hubs worldwide.
The capacity for IT load in India’s datacentres surged from approximately 350 MW in 2019 to an estimated 1.5 to 1.6 GW by 2025, reflecting a CAGR of roughly 29%, compared to around 20% globally. India’s share of the global datacentre capacity has risen from about 1.5% in 2019 to an estimated 2-3% by 2025.
Nomura forecasts that India’s datacentre capacity could reach nearly 7 GW by 2030, bolstered by more than 15 GW of additional announced pipeline capacity expected over the next decade.
The primary drivers of this demand include escalating mobile data consumption, increasing enterprise digitalisation, and a growing embrace of cloud and generative AI technologies. The report notes that AI workloads are leading to a shift towards high-density, GPU-heavy datacentres, which in turn necessitate higher power consumption.
India remains competitively priced, with construction costs for datacentres ranging from $6-7 million per MW, in contrast to $10-18 million per MW in developed APAC and Western markets. Access to competitively priced electricity through open access, renewable power purchase agreements, and captive power arrangements further strengthens India’s cost advantage.
The brokerage emphasizes that the most promising market opportunities lie within the industrial equipment supply chain that supports datacentre infrastructure. Nomura identifies five key product categories that collectively account for nearly 60-75% of capital expenditure budgets for datacentres, including switchgear and transformers, uninterruptible power supply (UPS) and battery systems, backup diesel and gas generators, cooling systems, and structured cabling infrastructure.
Major players in this ecosystem include ABB India, Siemens, Hitachi Energy India, GE Vernova T&D India, CG Power, and Cummins India. Among these, Nomura has assigned buy ratings to only GE Vernova T&D India and CG Power, while ABB India has a reduce rating; Siemens and Cummins India are rated neutral, and Hitachi Energy India is not rated.
Additionally, Nomura observes that delivery lead times of two to four years have created a favourable seller’s market, resulting in multi-year order backlogs for companies involved in the datacentre supply chain. The brokerage anticipates that premium pricing trends will persist, as datacentre projects demand higher reliability, tighter customisation, faster execution timelines, and on-site engineering support.
Published on June 2, 2026.
