Power solutions major Cummins India has said it sees strong business opportunities in the rapidly expanding data centre segment in India, driven by rising AI adoption, cloud services and data localisation norms, though it does not expect the segment to be its sole growth engine.

Cummins India Ltd, part of US-based Cummins Inc, operates across power generation, aftermarket services and exports, with multiple manufacturing and assembly facilities in the country. Managing Director Shveta Arya said data centres have long been part of the company’s portfolio and are now gaining momentum in India.

Data centres demand extremely high reliability, with 99.99 per cent uptime, making backup power systems critical. While primary electricity is sourced from grids or substations, generator sets play a vital role in ensuring uninterrupted operations, creating a strong opportunity for Cummins, Arya said.

During the September quarter, data centres contributed nearly 40 per cent of Cummins India’s power generation revenue, highlighting the segment’s growing importance. The company has also indicated in earlier earnings calls that the data centre market is steadily picking up.

According to industry estimates, India’s operational data centre capacity stands at about 1.4 gigawatts, with a similar capacity under construction and a much larger pipeline planned for the coming years. Growth is being supported by regulatory backing, subsidies and increasing digital adoption.

However, Arya noted that Cummins India’s diversified portfolio across manufacturing, e-commerce, residential and commercial sectors means data centres, while important, may not emerge as the single dominant growth driver in the near term.