CG Power and GE Vernova T&D India have seen no signs of weakening demand from US data-centre customers, although industry experts say project timelines could face adjustments.
Aishwarya Nair
&
Danish Khan
November 06, 2026 / 14:36 IST
File photo
- US data centre transformer demand remains strong.
- Indian manufacturers report no US order slowdown.
- Companies are diversifying into new global markets.
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Demand for transformers from US data centres is expected to remain strong despite a sell-off in artificial intelligence-linked stocks and concerns over the sustainability of AI infrastructure spending, industry experts said. Indian manufacturers, including CG Power and GE Vernova T&D India, have reported no signs of weakening demand from US customers.
The outlook comes amid volatility in Wall Street technology stocks and concerns that the recent US midterm election results could lead to tighter regulation of data centres and a slowdown in AI capital expenditure.
While industry experts expect demand for power equipment to remain resilient, they said some data-centre projects could face delays if technology companies reassess the pace of infrastructure investments.
“While the recent volatility in AI-linked stocks reflects near-term market concerns around the pace of data centre investments in the US, the long-term fundamentals of AI infrastructure remain strong,” said Vinish Bawa, partner at PwC.
He said growing AI adoption, increasing computing requirements and rising demand for reliable power and connectivity would continue to drive investments in data centres, power transmission and fibre infrastructure.
“While project timelines may undergo periodic adjustments, the broader infrastructure demand outlook remains positive, with opportunities for sustained growth over the medium to long term,” Bawa added.
Tarun Pathak, research director at Counterpoint, said political developments in the US had added to concerns over the pace of AI investments.
“The trigger was more or less political and investors fear that Democratic wins in the midterms will bring tighter data centre regulation and slow AI capex. For Indian suppliers of power equipment and optical fibre, the real test is whether US order inflow holds up through 2027,” Pathak said.
Indian transformer manufacturers say demand from US data-centre customers remains intact, with some buyers seeking faster equipment deliveries as projects move into execution.
GE Vernova T&D India chief executive officer Sandeep Zanzaria said the company had seen no signs of trouble among customers when analysts asked about possible cancellations of US data-centre orders during its October 30 earnings call.
Instead, customers were pressing for earlier deliveries as projects moved from the planning stage to active execution, according to the company’s earnings call transcript.
GE Vernova T&D India is also in discussions to secure a $151-million order to supply transformers for US data centres. The proposed contract has not yet been formally included in its order backlog.
CG Power has also maintained a positive outlook on the segment.
Earlier this year, the company secured its largest-ever export order, worth around Rs 900 crore ($99.2 million), from US-based Tallgrass Integrated Logistics Solutions to supply transformers for large data centres.
During its October 23 analyst call, CG Power global CEO and managing director Amar Kaul said data centres would continue to be an important business segment despite concerns surrounding AI investments.
“AI will keep booming, of course, there can be news in the industry differently. But data centre will continue to be important,” Kaul told analysts.
Indian transformer manufacturers are also expanding across geographies and business segments to reduce their dependence on any single market or industry.
CG Power, Transformers & Rectifiers (India) and GE Vernova T&D India supply equipment across data centres, renewable energy, oil and gas and grid modernisation, with export markets spanning the US, Europe and the Middle East.
CG Power has said India will remain its primary growth market even as it expands its presence across the Americas, Europe and the Middle East and North Africa.
The company has also indicated that it does not intend to become overly dependent on any single business segment.
For GE Vernova T&D India, data-centre-related equipment currently accounts for less than 2 percent of its existing order backlog, largely comprising a limited number of 220 kV products and grid automation packages.
The proposed $151-million US data-centre order has not yet been included in the backlog.
While Indian manufacturers have not reported a slowdown in US demand, Pathak said the key test for suppliers of power equipment and optical fibre would be whether order inflows hold up through 2027.
Aishwarya Nair
Danish Khan is the editor of Technology and Telecom. He was previously with the Economic Times and has tracked the sector for 15 years.
first published: Nov 6, 2026 02:36 pm
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