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CG Power bagged a ₹900 crore export order from US-based Tallgrass Integrated Logistics Solutions. This marked its entry into the global data centre space.
FYI, this is the largest single contract in the company's history.
The deets: the order is for power transformers, which are core equipment used to manage and stabilise electricity inside large data centres. CG Power will design, manufacture, and test these transformers at its Indian facilities and ship them to the US over 12–20 months.
These transformers are built for high reliability and round-the-clock uptime. This is critical for data centres running cloud services and AI workloads, where even a short power failure can cause major disruptions.
Simply put, the order is to supply equipment that keeps large data centres in the US running smoothly.
Why it matters: India is exporting high-value equipment to the US at a time when US tariffs and trade tensions are making global sourcing tougher. For India, it means steady dollar inflows, stronger manufacturing, and deeper trade ties, even as protectionism rises elsewhere.
Zoom out: Power transformers are a big manufacturing story in India, backed by scale and exports. India’s electrical equipment industry is valued at $50+ billion, and transformer exports alone are estimated at $3–4 billion annually, with the US, Middle East, and Europe among the top destinations.
The shift is visible in demand too. India’s data centre capacity is expected to more than double to nearly 1,700 MW by 2027, up from nearly 850 MW today. The global data centre power demand is growing at 10–12% annual rate driven by AI and cloud.
This is pushing demand for high-reliability, custom-built power transformers, an area where Indian manufacturers are increasingly competing with global peers.
