The rapid growth of data centres across India is propelling demand for backup power solutions, with major equipment suppliers like Cummins India capturing a significant share amid a booming digital infrastructure sector.
India’s data centre build-out is turning standby power into a bigger line item for equipment suppliers, with generator-set makers such as Cummins India, Kirloskar Oil Engines and Sterling Green Power drawing stronger orders as operators race to add capacity. The shift reflects a simple operational reality: digital infrastructure cannot afford long outages, so diesel generators remain a common back-up because they can come online quickly and keep servers, cooling systems and network gear running during grid failures.
According to Reuters-style reporting from the sector, Cummins India has become the clearest beneficiary of that demand. Managing director Shveta Arya said data centres accounted for 30% to 35% of the company’s domestic power-generation revenue in FY26, up from less than 2% about seven years ago. That segment also made up 40% of domestic power-generation revenue in the June quarter, suggesting momentum has continued into the current year.
The scale of the opportunity is substantial. PL Capital estimates that generator systems account for nearly 9% of total data-centre capital spending. On its assumptions, including roughly ₹65 crore of capital expenditure per megawatt and 2.2 GW of additional capacity by FY30, the brokerage pegs the genset opportunity at about ₹1.35 trillion by 2030. Industry estimates also suggest Indian data centres could add 26.3 GW of electricity demand by FY32, underlining why on-site back-up power remains essential even as grid investment expands.
Cummins appears to hold a leading position in that market. PL Capital estimates it has about 55% of genset sales to India’s data-centre sector, helped by an early start, a broad product range and long-standing ties with global clients. The company reported domestic power-generation sales of ₹4,758 crore in FY26 and total sales of ₹11,950 crore. Kirloskar Oil Engines, which reported FY26 revenue of ₹7,701 crore, is also leaning on the sector as it targets $2 billion, or about ₹19,000 crore, in annual operating revenue by FY30. Chief executive Rahul Sahai said the company supplied equipment to 25 data centres last year, with products spanning roughly 750 kVA to 4,000-5,000 kVA.
The market is broadening beyond the biggest names. Sterling Green Power Solutions, part of Sterling & Wilson’s energy business, is reported to be preparing a ₹1,500 crore initial public offering, while credit-rating reports cited in the original coverage say its new order inflow rose to ₹2,900 crore in FY26 from ₹1,100 crore in FY25 and reached ₹3,700 crore by 30 June. Around ₹3,100 crore of its order book was linked to data-centre projects. For generator suppliers, that points to a demand cycle that is likely to last well beyond the current construction wave, with maintenance, parts, servicing and fuel-management systems offering additional revenue as India’s digital infrastructure continues to expand.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
