India's expanding network of high-voltage transmission infrastructure, coupled with mounting electricity demand from data centre operators, is positioned to widen the commercial landscape for engineering and capital goods manufacturers, with HVDC technology identified as a notable driver of that growth, according to a report from 360 ONE Capital.
Three factors — the push to integrate more renewable sources into the grid, efforts to modernise transmission infrastructure, and the growing appetite for electricity among data centres — are positioned to sustain demand for power equipment in the years ahead.
Projections outlined in the report place India's HVDC network at 55 GW by FY32, up from 34.5 GW anticipated for FY27, while an additional 78 GW of pipeline capacity has been mapped out by the Central Electricity Authority through FY36. High-voltage direct current transmission has taken on a growing role in India's efforts to integrate renewable energy sources into a broader national grid.
The report also noted that the pool of suppliers serving the sector remains narrow, and that completing projects on time and on specification carries weight when companies compete for contracts. Vendors supplying hardware and infrastructure stood to draw a share of data centre expenditure, with that revenue flowing in parallel to — rather than displacing — income already generated by conventional transmission work.
Data centres and similar high-demand operations represent an additional category of entities drawing on electricity supply. India's installed data centre capacity stood at under 2 gigawatts at the time of the report, with projections placing it as high as 18 gigawatts by the decade's end. Operational dependencies for these installations include steady power delivery and specialised grid hardware — transformers, switchgear, and network management systems.
Rising power consumption and the rapid build-out of digital infrastructure together open avenues for the sector's expansion that reach beyond what conventional utility spending alone has historically provided. Broader output of specialised transmission equipment, alongside expanded manufacturing facilities, is projected to provide additional support for the industry. Domestic production of high-voltage equipment, the report found, could give the supply chain tighter oversight while reducing the country's reliance on imported components.
Delays to timelines, rising input costs, and an unsettled outlook for worldwide investment in AI infrastructure all stand to temper the rate at which growth unfolds. Slippage in the timing of revenue can stem from holdups in awarding and executing large contracts, and where commodity prices climb, manufacturers operating under agreements that leave input-cost exposure unhedged may find their margins squeezed. Questions about export orders and data centre investment on the global stage leave near-term results open to movement in either direction.
The report identified three factors as determinants of how well the sector stands to benefit from coming opportunities: the pace and breadth of grid transmission expansion, the degree to which domestic manufacturing capacity grows, and whether investment in data centres remains stable.
