India's USD 100 Billion Data Centre Boom Creates Multi-Billion Dollar Windfall for L&T, Voltas, Blue Star, and LG Electronics

India's rapidly expanding digital infrastructure is reportedly unlocking multi-billion-dollar opportunities for infrastructure developers and air-conditioning solution providers. Industry observers suggest that companies such as Larsen & Toubro (L&T), Voltas, Blue Star, and LG Electronics India are strategically pivoting towards the data centre ecosystem, where demand for high-performance HVAC and electrical systems continues to surge.

Key Investment and Capacity Figures

Private Sector Demand Surges on Data Centre Growth

The explosion of AI-driven data centres, sparked by major announcements from global technology giants including Google, AWS, Meta, and Reliance, has led to a significant spike in private-sector order inflows for construction and equipment firms. This development aligns with the broader trend of major data centre partnerships reshaping India's digital landscape.

At Larsen & Toubro, the share of private-sector orders has reportedly risen sharply in recent quarters, driven by increased investments in data centre, commercial, and residential real estate development. This shift is said to be bolstering L&T's diversified infrastructure portfolio as more private clients invest in future-ready digital campuses.

Industry analysts note that Microsoft's strategic land acquisitions in Hyderabad and similar moves by other hyperscalers reflect the growing confidence in India's digital infrastructure potential.

Cooling Giants Pivot to High-Tech Data Centre Solutions

Companies specialising in commercial cooling and mechanical infrastructure are reportedly eyeing the data centre boom as a long-term growth engine. The sector's evolution mirrors developments in the Indian office real estate market driven by tech expansion.

Blue Star

Blue Star is reportedly developing customised chillers and high-performance HVAC equipment specifically designed for data centres. The company is said to be exploring strategic partnerships in emerging areas like liquid cooling technology and expects strong double-digit growth in this segment. Industry sources indicate that data centre projects offer higher margins compared to traditional HVAC business.

Voltas

Voltas has commenced manufacturing centrifugal chillers tailored for high-capacity installations, according to industry reports. The company reportedly sees data centres growing from less than 5% to approximately 30% of its B2B MEP business. Voltas is also seeking to expand in commercial AC and domestic project segments as demand continues to soar.

LG Electronics India

LG Electronics India is actively targeting data centre cooling solutions, positioning itself for the AI-led hyperscaler wave. CFO Dongmyung Seo reportedly confirmed that India remains a focus market for advanced cooling products aligned with global hyperscale data strategies.

Infrastructure Surge Behind the Scenes

India's evolution as a global cloud and AI compute hub is not only attracting technology giants but also triggering a second-order boom for companies operating in power, cooling, and civil infrastructure. This development complements ongoing major institutional investments in Indian real estate.

According to Deloitte, India's total data centre investments are expected to reach USD 100 billion by 2027, reflecting robust confidence in long-term AI and cloud-driven demand. These facilities typically require high-density, energy-efficient HVAC systems, compliant electrical and plumbing infrastructure (MEP), robust power backup and grid integration, and ultra-low latency connectivity with security layers.

The data centre boom is also driving demand in warehousing and logistics sectors, as supporting infrastructure expands across the country.

Market Outlook and Strategic Implications

The data centre sector is emerging as one of the most lucrative B2B verticals for India's industrial conglomerates and equipment manufacturers. As demand continues to rise, companies with specialised products, installation capabilities, and service networks are likely to see sustained topline and margin growth.

Industry experts observe that Bengaluru's position as India's leading office space market positions it well to benefit from data centre-related commercial real estate demand. Similarly, Google's significant office space expansion in Bengaluru reflects the interconnected growth of tech operations and supporting infrastructure.

The trend also extends to other major cities, with Hyderabad's infrastructure projects creating additional opportunities for data centre development and related real estate investments.

Key Takeaways

Data centre expansion in India is accelerating, with IT load capacity set to double by 2027. Global hyperscaler investments have crossed USD 32 billion in just two years. Traditional HVAC and MEP firms are re-aligning their strategies to capture this demand surge. L&T, Voltas, Blue Star, and LG India are leading the charge in data centre-focused infrastructure solutions. The sector reportedly offers strong margins, long-term contracts, and high-tech innovation opportunities that could reshape India's record-breaking real estate investment landscape.

Disclaimer: This article is intended for informational purposes only and should not be construed as investment, financial, or professional advice. The information presented is based on publicly available sources and industry reports at the time of writing. Readers are advised to conduct their own due diligence and consult qualified professionals before making any investment or business decisions. Ghar.tv does not guarantee the accuracy, completeness, or reliability of any information contained herein and shall not be held liable for any losses or damages arising from the use of this content.