Power generator manufacturers in Pune are expecting a surge in demand driven by the data sector, overshadowing growth in the telecommunications and artificial intelligence (AI) industries. Cummins India has forecasted potential orders worth Rs 500 crore annually from data centers, with a recent significant order already completed during Q3FY24. According to Ashwath Ram, Managing Director of Cummins India, these orders are typically substantial and signify a continuing trend in the market.
Similarly, Kirloskar Oil Engines is also positioned to benefit from higher capacity genset orders from new data center clients, with a focus on larger kilowatt gensets to cater to the growing data center segment. Industry experts anticipate a significant increase in data center power consumption, with expectations for it to rise from 678 MW to 1,400 MW over the next three years. While Tier-I cities remain preferred locations for data center expansions, Tier-II cities are also experiencing steady growth in this sector, according to a report by Colliers India.
The continuous rise in data consumption, driven by the growth of technologies such as AI and telecommunications, is creating a positive outlook for power generator manufacturers in the region. With a clear focus on the data center segment and the potential for substantial orders, companies like Cummins India and Kirloskar Oil Engines are well-positioned to capitalize on this trend and contribute to the evolving landscape of the industry.