Voltas and Blue Star Target India’s Expanding Data Centre Cooling Market

Data Centre Cooling Market

India: Voltas Limited and Blue Star Limited are intensifying their focus on India’s fast-growing data centre (DC) segment as the country’s installed capacity is projected to exceed 2 GW by 2026, up from over 1 GW currently, with analysts forecasting a five-fold expansion to over 8 GW by 2030. Blue Star, the second-largest homegrown player in India’s room air conditioning market, is developing chillers and liquid cooling systems, including Cooling Distribution Units (CDUs), specifically for data centres, with several models in advanced stages of development and expected timelines of around 12 months. Managing Director B. Thiagarajan stated that the company does not require external collaboration for chiller development, while highlighting its leadership in the MEP (mechanical, electrical and plumbing) and EPC segments of the DC space. The company noted that its products are undergoing rigorous testing prior to commercial rollout.

Meanwhile, Tata-backed Voltas is positioning the segment as a low-risk, fast-track opportunity, with project turnaround timelines of less than 9–12 months. Managing Director Mukundan Menon said the company aims to expand its share in data centre manufacturing by leveraging multiple levers, including chiller supply and a new technology partner alliance for centrifugal chillers. Voltas manufactures both conventional and oil-free centrifugal chillers and emphasizes energy efficiency, a critical factor given that energy costs form a significant portion of data centre operating expenses. The company is also submitting bids through its MEP contracting division to position itself as a single-source vendor. Industry projections indicate that India’s data centre expansion could generate over Rs 2.5 trillion (USD 30 billion) in capital expenditure, according to KPMG, while the Adani Group has announced Rs 8.3 Trillion (USD 100 billion) in investments by 2035 to develop renewable-energy-powered hyperscale AI-ready data centres. Other global investors expanding in India include Amazon, Google, and Meta Platforms, amid strong demand driven by government data sovereignty policies.

Source: Money Control