Cummins India Eyes Growth in Data Centre Boom

Cummins India sees significant growth opportunities in the data centre market driven by AI, data localisation, and government support. Despite this, the company maintains a diversified portfolio and does not view data centres as its main growth driver, even as the sector contributes substantially to its revenue.

Cummins India, a leading power solutions provider, is capitalizing on the burgeoning data centre market in India, driven by artificial intelligence (AI) adoption and data localisation trends. The company's Managing Director, Shveta Arya, highlighted the pivotal role their technology plays in ensuring 99.99% uptime for data centres, a critical requirement in the sector.

Contributing 40% of Cummins India's revenue in the power generation segment last quarter, data centres are a key growth area. However, Arya emphasized that while data centres offer substantial opportunities, they remain just one part of the company's diversified portfolio, which spans power generation, aftermarket, and exports.

According to a Macquarie Equity Research report, India's data centre capacity could expand fivefold by 2030, supported by favorable regulations and rising cloud adoption. Still, as India's other sectors boom, Cummins is cautious to not overestimate data centres as the singular growth catalyst for its future in the dynamic Indian market.

(With inputs from agencies.)