Top 5 ancillary companies driving data centre growth

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Data centres, often dubbed the "data factories of the world," are vital to the modern digital ecosystem. These seemingly modest facilities house the technology that stores, processes, and manages vast data. This storage enables the smooth operation of the technologies we depend on daily.

As technological advancements continue accelerating, the demand for data centers is projected to grow steadily. This trend has significantly benefited ancillary industries, which are experiencing remarkable growth. Manufacturers of key components like diesel and gas generators, switchgear, motors, and electrical panels are seeing a sharp rise in domestic demand and exports.

Indian-made products are becoming increasingly popular in global markets, with shipments reaching Southeast Asia, the Middle East, and Europe. According to Crisil Ratings, the Indian data center industry is expected to attract investments exceeding ₹45,000 crore over the three years through to 2026. Similarly, a June 2023 report by Colliers, a commercial real estate company, projects India's data centre inventory to double to 20 million square feet by 2025, driven by the increased adoption of smart devices, e-commerce, and cloud services.

Leading Indian players in the generator industry have noted a substantial increase in domestic demand and export orders driven by the global expansion of data centres. This surge emphasises the growing recognition of India's ancillary manufacturing sector as a dependable and competitive supplier of high-quality components for the Indian and global data center industry. Kirloskar Oil Engines is a renowned manufacturer of diesel engines and power generation equipment.