Schneider Electric invests Rs 100 cr in new cooling factory in Bengaluru

Schneider Electric, a global player in energy management and automation, has invested Rs 100 crore in a new cooling factory in Bengaluru, officially launched on Thursday. The company has also earmarked an investment of Rs 3,200 crore in India by 2026 to expand its presence across the country.

The cooling factory in Bengaluru, spanning about 6.5 acres, will focus on developing “innovative” cooling solutions to meet the growing exponential demand for the data centre ecosystem in the country, the company said.

“The new manufacturing facility embodies our commitment to the vision of an Atmanirbhar Bharat. It underlines our technological advancement, standing as a beacon of innovation and progress, poised to meet the demands of the data centre industry. India is a crucial market for us, we are set to invest Rs 3,200 crore by 2026 to expand our presence in the country. This factory, a part of that commitment, will go beyond manufacturing, creating job opportunities in the state of Karnataka and fostering the growth of the local economy,” said Deepak Sharma, zone president Greater India, managing director and chief executive officer of Schneider Electric India.

Eighty-five per cent of the products manufactured in this factory will be exported, significantly catering to the data centre segment, as well as to buildings, industry, and infrastructure. Fully owned by Schneider Electric, this factory will play a crucial role in the company’s global supply chain.

“This new factory is equipped with cutting-edge technology and specialises in manufacturing cooling products and solutions that are tailored for data centres, telecom, commercial, and industrial applications, both in domestic and international markets,” Schneider Electric said in a statement.

The primary focus of the factory will be to produce the latest generation of row cooling systems, high-efficiency chillers, and other precision air conditioning systems.

The global data centre cooling market size was estimated at $18.65 billion in 2023 and is expected to grow at a compounded annual growth rate (CAGR) of 16.8 per cent from 2024 to 2030, according to Grand View Research. The increasing demand for energy-efficient data centres is anticipated to create lucrative growth opportunities for energy management players.

“The data centre industry is currently facing numerous challenges, and one of the significant issues is energy volatility. With the exponential growth of artificial intelligence, the demand for data processing is increasing rapidly, leading to an increased demand for cooling solutions," said Pankaj Sharma, executive vice president, Secure Power Division and Data Centre Business, Schneider Electric.

"To cater to this growing need, our factory is equipped to manufacture efficient cooling solutions that not only address the cooling requirements of high-density computing environments but also contribute to building resilient and sustainable data centre infrastructure,” Sharma added.