Nomura names GE Vernova, CG Energy, 4 others amongst high performs on India’s decadal information centre alternative
In response to Nomura, India’s information centre IT load has expanded from round 350 MW in 2019 to almost 1.5-1.6 GW in 2025, implying a CAGR of about 29%, in contrast with roughly 20% globally, based mostly on information from Cushman & Wakefield and Bloomberg. Because of this, India’s share of world information centre capability has elevated from round 1.5% in 2019 to roughly 2-3% in 2025.
To capitalise on this chance, Nomura has recognized GE Vernova T&D India and CG Energy as its key beneficiaries, whereas additionally highlighting ABB India, Siemens, Hitachi Vitality India and Cummins as firms that might profit from the increasing ecosystem.
Amongst its high picks, Nomura has maintained a goal worth of Rs 5,675 on GE Vernova T&D India, implying an upside of about 17% from present ranges. For CG Energy, the brokerage has set a goal worth of Rs 1,050, indicating an upside potential of 19.4%.
Why Nomura backs GE Vernova
Nomura famous that GE Vernova, the father or mother firm of GE Vernova T&D India, is among the many world’s largest suppliers of grid infrastructure to hyperscale information centres. The Indian subsidiary, in the meantime, is more and more rising as a key manufacturing and export hub for the group.
The brokerage mentioned localisation investments have helped GE Vernova T&D India change into a cost-competitive export base for air-insulated switchgear (AIS) and gas-insulated switchgear (GIS) tools serving Europe, the Center East and Africa. These areas are witnessing grid modernisation alongside rising energy demand from information centres, making a long-term development runway for the corporate’s high-voltage tools enterprise.
Nomura expects profitability to enhance as information centre-linked orders type a bigger portion of the corporate’s order guide. It added that increased volumes, supported by a largely mounted manufacturing price base, together with premium pricing for merchandise the place supply timelines are essential, may additional strengthen margins.
CG Energy seen benefiting from hyperscale demand
For CG Energy, Nomura mentioned the corporate has emerged as a direct beneficiary of rising information centre investments in each India and america.The brokerage pointed to a Rs 900 crore transformer export order secured in January 2026 from US-based Tallgrass Built-in Logistics for a hyperscale information centre venture as proof of the rising alternative.
Nomura estimates that transformers and switchgear are essential parts in each hyperscale information centre venture and account for 15-20% of complete capital expenditure in each conventional and AI-focused information centres. It expects CG Energy to ship a 31% earnings per share CAGR between FY26 and FY29.
Industrial suppliers seen as the largest beneficiaries
Past its high picks, Nomura believes probably the most enticing technique to take part in India’s information centre development story is thru the economic provide chain.
The brokerage estimates that 5 product classes account for 60-75% of a knowledge centre’s capital expenditure funds of USD 10-22 million per MW. These embody medium- and low-voltage switchgear and transformers, UPS and battery programs, backup diesel and gasoline generator units, precision cooling and liquid-cooling distribution items, and rack, busway and structured cabling infrastructure.
In response to Nomura, the aggressive panorama throughout these segments stays extremely consolidated, with firms comparable to ABB India, Siemens, Hitachi Vitality India, GE Vernova T&D India, CG Energy and Cummins performing as dominant suppliers throughout a number of classes. The brokerage estimates that these firms collectively command greater than 40% market share in every of the related segments.
Nomura additionally highlighted that supply timelines of two to 4 years have created a beneficial atmosphere for tools producers. Sturdy demand and restricted provide have resulted in multi-year order backlogs, offering income visibility via FY27-FY29 for firms working within the information centre provide chain.
The brokerage additional famous that suppliers are benefiting from premium pricing as information centre tasks demand increased reliability, better customisation, sooner supply schedules, certifications and on-site engineering help in contrast with conventional business and industrial tasks.
India’s information centre buildout gathering tempo
Primarily based on introduced venture pipelines, Nomura estimates visibility on greater than 15 GW of incremental information centre capability over the following decade. It expects India’s complete information centre capability to achieve practically 7 GW by 2030, implying a CAGR of round 30% between 2025 and 2030 and outpacing the broader Asia-Pacific area.
The brokerage additionally highlighted India’s price benefits in information centre growth. In response to JLL information cited by Nomura, building prices in India are estimated at round USD 6-7 million per MW, considerably decrease than the USD 10-18 million per MW usually seen throughout developed Asia-Pacific and Western markets.
As well as, aggressive energy sourcing via open-access preparations, renewable energy buy agreements (PPAs) and captive energy technology allows electrical energy prices of roughly 7-8 US cents per kilowatt-hour, strengthening India’s working price benefit.
Whereas co-location rental charges in India stay under these in developed markets, Nomura believes decrease capital expenditure necessities and beneficial energy economics help enticing project-level returns. Because of this, stabilised information centre belongings have the potential to generate infrastructure-like annuity money flows and ship mid-teen fairness inside charges of return (IRRs), in accordance with the brokerage.
(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances)
