4 Stocks to benefit after India’s data centre industry expands to a $10 billion market

Synopsis:
India’s​‍​‌‍​‍‌​‍​‌‍​‍‌ data-centre expansion, coupled with the AI-driven rack densification, is resulting in a substantial cooling and power upgrade cycle, thereby creating opportunities for the cooling suppliers such as Shree Refrigerations, Hitachi Energy, etc.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ data-centre market in India has expanded to a $10 billion value, and by a capacity increase of 139 percent, it has generated a revenue of $1.2 billion in FY24. AI is the main factor causing higher rack densities and demanding next-gen cooling; thus, the need for efficient thermal systems will increase significantly. 

This, in turn, is a huge tailwind for companies such as Shree Refrigerations, KRN Heat Exchangers, Thermax, and Hitachi Energy, which are getting ready to be the suppliers of advanced cooling and power-thermal solutions to India’s rapidly growing data-centre ecosystem. ​‍​‌‍​‍‌​‍​‌‍​‍‌

Shree Refrigerations

Shree Refrigerations is a critical technology partner to India’s defence ecosystem, specialising in advanced refrigeration, HVAC, and electrical systems engineered for naval and marine environments. The company is the only Indian player formally approved by the Navy to supply refrigeration plants, turnkey HVAC solutions, and electrical panels, positioning it as a key enabler of mission-critical cooling infrastructure across naval vessels and other defence applications.

Shree​‍​‌‍​‍‌​‍​‌‍​‍‌ Refrigerations teamed up with Smardt Chillers Pte Ltd to introduce cutting-edge oil-free chillers in India to enable the technology to be used in data-centre cooling. This collaboration provides the company with the technical trustworthiness required for cooling of the most demanding missions, and the firm aspects of data centres as the source of 10-15% of the total revenue in the next five ​‍​‌‍​‍‌​‍​‌‍​‍‌years.

Hitachi Energy India

Hitachi Energy India Limited is engaged in offering products and services for electricity transmission, such as system integration, commissioning, and project support services. They manufacture transformers, motors, generators, and control devices and serve markets in India and globally.

Hitachi​‍​‌‍​‍‌​‍​‌‍​‍‌ Energy has developed integrated power and cooling solutions for high-load facilities to help the expanding data-centre ecosystem. The company is going to be a big beneficiary of the India data-centre power and thermal management growth by introducing cooling systems for the most essential electrical ​‍​‌‍​‍‌​‍​‌‍​‍‌infrastructure. Hitachi Energy is involved in complete pure water cooling systems for various industrial and power transmission applications with cooling capacity from 2 kW.

KRN Heat Exchanger and Refrigeration

KRN​‍​‌‍​‍‌​‍​‌‍​‍‌ Heat Exchanger and Refrigeration Ltd is a major contributor to the production of aluminium and copper heat exchangers, coils, condensers, and evaporators for the HVAC&R industry. Being a source of primary OEMs such as Daikin, Voltas, Schneider, and Carrier, the company is supported by a state-of-the-art plant that is capable of providing tailor-made, top-notch, and internationally tested ​‍​‌‍​‍‌​‍​‌‍​‍‌products.

To capitalise on the demand that is driving data centres, KRN has aligned its heat exchangers, coils, and condensers in such a way that they are the most efficient for data-centre HVAC use. The company is making sure, through the supply of the components to Daikin and Voltas, which are the OEM giants, that its parts become the direct source of the cooling systems, which are the tech that runs the hyperscale facilities of ​‍​‌‍​‍‌​‍​‌‍​‍‌India.

Thermax

Thermax​‍​‌‍​‍‌​‍​‌‍​‍‌ is a global engineering company that offers one-stop solutions in the areas of heating, cooling, power, water treatment, waste management, and air pollution control. The company has a total of 29 international offices, 14 manufacturing plants, and 88 countries where it operates. It uses energy-efficient and eco-friendly technologies to serve industries all over the ​‍​‌‍​‍‌​‍​‌‍​‍‌globe.

In​‍​‌‍​‍‌​‍​‌‍​‍‌ order to consolidate its position as a key player in data-centre cooling, Thermax has infused the technology in such a manner that the company are the major data-centres and supercomputing projects, with solutions like absorption chillers and adiabatic cooling systems. The company, with its engineering across-the-board project, has been a clear winner to be the next in line when users need energy-efficient, large-scale cooling for their ​‍​‌‍​‍‌​‍​‌‍​‍‌facilities.

Written by Satyajeet Mukherjee

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