Schneider Electric expects its India data center business to grow significantly faster than its broader operations in the country over the next four to five years, fueled by rising demand for AI-ready digital infrastructure.
The company believes the rapid expansion of artificial intelligence technologies, cloud computing, and enterprise digital transformation initiatives will accelerate the need for advanced data center ecosystems across India. As organizations increasingly adopt AI-powered applications and large-scale computing systems, demand for reliable energy management, secure infrastructure, and high-performance data facilities is witnessing strong momentum.
According to Sumati Sahgal, data centers currently contribute nearly 15% to 20% of Schneider Electric’s India business and are already growing at a double-digit pace. The company expects the segment to become a much larger growth driver in the coming years as India’s digital economy continues to expand rapidly.
Sahgal noted that the rise of AI workloads is reshaping infrastructure requirements, pushing enterprises and cloud service providers to invest in more efficient, scalable, and energy-optimized data center solutions. With AI systems demanding higher processing power and advanced cooling capabilities, infrastructure providers are increasingly focusing on building next-generation facilities capable of supporting complex computational environments.
The company also expects data center demand to expand beyond traditional metropolitan hubs. While cities such as Mumbai, Chennai, Hyderabad, and Bengaluru continue to dominate India’s data center landscape, emerging markets and secondary cities are gradually becoming important destinations for infrastructure investments due to rising digital adoption and enterprise expansion.
India has become one of the fastest-growing data center markets globally, driven by increasing internet penetration, cloud adoption, digital payments, enterprise modernization, and government-led digitization initiatives. Industry experts believe the ongoing AI boom will further strengthen investments in server infrastructure, energy management systems, and secure power technologies.
Schneider Electric has been actively expanding its presence in the sector by offering solutions focused on energy efficiency, power management, cooling systems, and sustainable infrastructure development for data centers and enterprise technology environments.
The company’s optimistic outlook reflects broader industry confidence in India’s digital infrastructure growth story, particularly as AI adoption creates new opportunities across sectors including banking, healthcare, manufacturing, telecom, and e-commerce.
As enterprises continue scaling AI capabilities, the demand for resilient and future-ready data center ecosystems is expected to remain one of the strongest drivers of technology infrastructure growth in India over the next decade.
