India’s growing data centre sector could open up a $90 billion opportunity for construction and infrastructure companies by FY35, according to a KPMG report. The opportunity is expected to rise from $30 billion by FY30 as the country adds more data centre capacity.India’s data centre capacity is expected to reach 7-7.5 GW by 2030. This growth will create demand for several areas, including construction, power, cooling, networking and security.By FY35, design and construction could account for around $27 billion of the opportunity. Cooling infrastructure could be worth another $24 billion, while power infrastructure inside data centres could account for $18 billion.Power infrastructure outside data centres is expected to add $12 billion. Network infrastructure and security could each account for about $5 billion.“A decade long, structural opportunity exists for the full engineering and infrastructure value chain as the sector scales capacity to meet demand,” KPMG said.
AI is changing what data centres need
The rise of artificial intelligence is also changing the kind of infrastructure required by data centres. AI workloads need more power, better cooling and specialised equipment, the report said.AI racks typically use 50-60 kilowatt of power per rack, compared with 8-12 kilowatt for non-AI workloads. This is leading to higher requirements for power infrastructure inside data centres.Cooling systems are also changing as data centres move away from traditional air-based cooling towards water and liquid cooling. KPMG said that liquid cooling is becoming a fast-growing opportunity because of AI workloads.The expansion could benefit existing suppliers as well as Indian companies looking to build capabilities in specialised areas.India already has a strong domestic base in civil construction, cooling towers and fibre-optic cable manufacturing. However, the country depends more on imports for advanced grid systems, battery energy storage systems, precision cooling and active network hardware.KPMG said developers, engineering and construction companies, equipment manufacturers, utilities and regulators will need to work together to capture the opportunity. This will be particularly important for reducing construction timelines and delays in getting power.“Execution capability in electrical, mechanical and commissioning segments will be the primary differentiator as capacity expands,” the report said.