Global brokerage Nomura believes India’s datacentre industry is entering a multi-year growth phase driven by accelerating digitalisation, cloud adoption and rising artificial intelligence-linked demand, with CG Power and GE Vernova T&D India emerging as its preferred plays.
In its report, Nomura said India’s datacentre industry is likely to record over 30 per cent CAGR during CY25-30, outperforming the broader APAC market as the country emerges as one of the fastest-growing datacentre hubs globally.
India’s datacentre IT load capacity increased from around 350 MW in 2019 to nearly 1.5-1.6 GW in 2025, implying around 29 per cent CAGR compared with about 20 per cent globally. It added that India’s share in global datacentre capacity has increased from around 1.5 per cent in 2019 to nearly 2-3 per cent in 2025.
Nomura estimates India’s datacentre capacity could reach nearly 7 GW by CY30, supported by visibility on more than 15 GW of incremental announced pipeline capacity over the next decade.
The brokerage said demand is being driven by rising mobile data consumption, increasing enterprise digitalisation and growing adoption of cloud and generative AI technologies. It noted that AI workloads are accelerating the shift toward high-density, GPU-heavy datacentres, resulting in materially higher power demand.
Nomura said India remains cost competitive with datacentre construction costs of around $6-7 million per MW compared with $10-18 million per MW across developed APAC and Western markets. Competitive electricity sourcing through open access, renewable power purchase agreements and captive power arrangements further strengthen India’s operating cost advantage, it added.
According to the brokerage, the most attractive listed market opportunity lies in the industrial equipment supply chain catering to datacentre infrastructure.
Nomura identified five key product categories that together account for nearly 60-75 per cent of datacentre capex budgets, including switchgear and transformers, UPS and battery systems, backup diesel and gas generators, cooling systems, and structured cabling infrastructure.
The brokerage highlighted ABB India, Siemens, Hitachi Energy India, GE Vernova T&D India, CG Power and Cummins India as major participants in the ecosystem. Among these, Nomura has assigned buy ratings only to GE Vernova T&D India and CG Power, while ABB India carries a reduce rating, Siemens and Cummins India are rated neutral, and Hitachi Energy India is not rated.
Nomura added that delivery lead times of two to four years have created a favourable seller’s market with multi-year order backlogs for companies operating in the datacentre supply chain. It also expects premium pricing trends to sustain as datacentre projects require higher reliability, tighter customisation, faster execution timelines and on-site engineering support.