Hitachi Energy India Aims for 30% Boost in Data Centre Growth with ‘Grid-to-Rack’ Solution

Hitachi Energy India aims to increase its share of the country’s data centre sector from a previous target of 10-15% to 30%. This new approach will offer a comprehensive ‘grid-to-rack’ power solution, Venu Nuguri, the Managing Director and CEO, told Reuters.

As a subsidiary of Zurich-based Hitachi Energy, Hitachi Energy India produces and supplies power equipment and grid technology for various industries, particularly data centres. The company holds roughly 50% of India's high-voltage direct current (HVDC) market, providing equipment that facilitates the transmission of electricity over long distances.

Previously, the firm estimated its addressable market in the data centre sector to be 10-15% of overall spending, encompassing both equipment and software solutions.

According to Nuguri, the ‘grid-to-rack’ solution will streamline energy supply for data centres, covering everything from the grid connection to distribution at the server rack level. This addition is expected to increase the company’s market size by another 10-15% in power infrastructure spending within the overall data centre industry.

Recently, Hitachi Energy India announced plans for a ₹20 billion (about $210.53 million) investment to establish a new large power transformer facility in Gujarat, bringing its total capital expenditure to ₹40 billion across 19 factories in eight locations. The company ended 2026 with an unprecedented order backlog of ₹296 billion.

Furthermore, Nuguri mentioned that the firm is “actively exploring” potential acquisitions in areas like data centres, digital technology, and power consulting to address any capability gaps.

According to consulting firm ​IMARC Group, the Indian data centre market, valued at $5.55 billion in 2025, is projected to reach $13.11 billion by 2034, with a CAGR of 10.01% from 2026 to 2034. This growth is driven by rapid digital transformation, increased cloud adoption, and rising AI/ML workload requirements. 

India's Digital Personal Data Protection Act (DPDPA) 2023 and initiatives like BharatNet are boosting investment, with hardware expected to hold 50% of the components market in 2025. Maharashtra, primarily Mumbai, accounts for the largest regional shares at 26%.