Data centre growth drives surge in power infrastructure demand

The rapid expansion of data centres, driven by artificial intelligence and large-scale computing, is creating significant pressure on power infrastructure. Developers are facing critical constraints including grid interconnection delays, supply chain shortages, and construction bottlenecks.

To mitigate these delays, industry experts suggest adopting modular prefabrication. By building, integrating, and testing power components like generators and switchgear in controlled factory environments rather than on-site, developers can ensure higher quality control and allow construction activities to run in parallel with equipment preparation.

In India, this demand is significantly impacting the power generation sector. Cummins India reported that data centre revenue accounted for 40% of its overall power generation sales in Q1 FY27, a substantial increase from 23% during the same period last year. The company noted a strong pipeline of inquiries, with customers placing orders for future years, particularly for engines used in colocation and hyperscaler requirements.