India’s industrial equipment manufacturers will likely dig a capex opportunity of $35 billion, profiting from India’s growing data center (DC) industry, says Nomura. The Indian DC industry is growing at a rapid speed with DC IT load increasing from ~350MW in 2019 to ~1.5-1.6GW in 2025, reflecting a ~29% CAGR versus ~20% globally, it said.<\/p>\n
The brokerage firm noted that the DC industry is expected to grow to “~7GW, at a CY25-30F CAGR of +30%” unlocking attractive opportunities for industrial equipment manufacturers.<\/p>\n
“We estimate incremental capacity of ~5.1GW until CY30F will provide a capex opportunity of $35 billion, a majority of which will be captured by industrial equipment manufacturers supplying electrical\/mechanical and cooling solutions to DCs,” said Nomura. <\/p>\n
“India’s share in global DC capacity consequently increased from ~1.5% in 2019 to ~2-3% in 2025. Our analysis, based on announced pipelines, suggests the industry has visibility on +15GW of incremental capacity over the next decade, and we expect India’s DC capacity to reach ~7GW by CY30F (+30% CAGR),” it said. <\/p>\n
The industry is being supported by increasing cloud\/AI adoption and rapid digitalisation. Furthermore, “India remains cost-efficient with construction costs of ~$6-7mn\/MW versus ~$10-18mn\/MW across developed APAC and Western markets,” noted Nomura. <\/p>\n
“In our view, competitive electricity sourcing at ~$7c-8c\/KW through open access, renewable PPAs, and captive power arrangements further strengthens India’s operating cost advantage,” it said. <\/p>\n
At the same time, the DC industry, led by “led by a large announced pipeline (+15GW) on the supply front,” is creating favorable prospectus for the industrial equipment manufacturers owing to “robust demand and sustainable premium pricing trends,” noted Nomura. <\/p>\n
“Companies operating in switchgear, transformers, generator sets, UPS systems, cooling equipment, and rack infrastructure should benefit from sustained premium pricing and multi-year order visibility. Overall, this presents a compelling long-term opportunity across both DC developers and broader supply chain,” the report added. <\/p>\n
The brokerage firm further noted that “the most attractive exposure is in the industrial supply chain, for investors. “We estimate five product categories: (i) medium- and low-voltage switchgear and transformers, (ii) UPS and battery systems, (iii) backup diesel and gas gensets, (iv) precision cooling and liquid-cooling distribution units, and (v) rack, busway, and structured cabling infrastructure together absorb 60-75% of a DC’s $10-22mn\/MW capex budget,” it said.<\/p>\n","protected":false},"excerpt":{"rendered":"
India’s industrial equipment manufacturers will likely dig a capex opportunity of $35 billion, profiting from India’s growing data center (DC) industry, says Nomura. The Indian DC industry is growing at a rapid speed with DC IT load increasing from ~350MW in 2019 to ~1.5-1.6GW in 2025, reflecting a ~29% CAGR versus ~20% globally, it said. The brokerage firm noted that the DC industry is expected to grow to “~7GW, at a CY25-30F CAGR of +30%” unlocking attractive opportunities for industrial equipment manufacturers. “We estimate incremental capacity of ~5.1GW until CY30F will provide a capex opportunity of $35 billion, a majority […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1012035","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1012035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1012035"}],"version-history":[{"count":1,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1012035\/revisions"}],"predecessor-version":[{"id":1012045,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1012035\/revisions\/1012045"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1012035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1012035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1012035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}