en.Wedoany.com Reported - Nomura pointed out that Indian industrial equipment manufacturers are poised to capture a capital expenditure opportunity of approximately $35 billion, driven primarily by the rapid growth of the local data center industry. According to the firm's data, India's data center IT load has increased from about 350 MW in 2019 to approximately 1.5 to 1.6 GW in 2025, representing a compound annual growth rate (CAGR) of around 29%, compared to the global average of about 20% over the same period.
In its report, Nomura estimates that by FY2030, India's data center industry will expand to approximately 7 GW, with a CAGR of 30% from FY2025 to FY2030. This growth outlook presents significant market opportunities for equipment manufacturers. The report estimates that an incremental capacity of about 5.1 GW will generate a $35 billion capital expenditure opportunity, the majority of which will be captured by industrial equipment manufacturers supplying electrical, mechanical, and cooling solutions to data centers.
The report shows that India's share of global data center capacity has risen from approximately 1.5% in 2019 to about 2% to 3% in 2025. Based on announced pipeline projects, the industry has visibility of over 15 GW of incremental capacity over the next decade, with India's total data center capacity expected to reach approximately 7 GW by FY2030.
The industry's growth is driven by rising adoption of cloud services and artificial intelligence, as well as rapid digitalization. Nomura highlights that India has a cost advantage in construction, with costs of approximately $6 million to $7 million per MW, compared to $10 million to $18 million per MW in developed Asia-Pacific and Western markets. The report also notes that through open access, renewable energy purchase agreements, and captive power arrangements, Indian data centers can secure electricity at a cost of about $0.07 to $0.08 per kWh, further enhancing their operational cost competitiveness.
Nomura believes that the data center industry, dominated by a large announced pipeline (over 15 GW) on the supply side, combined with strong demand and sustainable premium pricing trends, creates favorable conditions for industrial equipment manufacturers. The firm points out that companies involved in switchgear, transformers, generator sets, uninterruptible power supply systems, cooling equipment, and rack infrastructure are likely to benefit from sustained premium pricing and multi-year order visibility.
The report further analyzes the most attractive investment opportunities. Nomura estimates that five product categories together account for 60% to 75% of the $10 million to $22 million per MW capital expenditure budget for data centers. These five categories include medium- and low-voltage switchgear and transformers; uninterruptible power supplies and battery systems; backup diesel and gas generator sets; precision cooling and liquid cooling distribution units; and racks, busways, and structured cabling infrastructure.
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