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Data centres - backup power
What it is
Hyperscale data centres require synchronised standby generation with black-start capability, typically in 500-800 kVA units. Each megawatt of IT load needs roughly 1.5 MW of standby diesel capacity
Failure penalties make backup non-negotiable rather than discretionary
Impact on industries
- A high-value, multi-year procurement pipeline tied to the AI and cloud investment cycle rather than to Indian industrial activity
- Redundancy requirements multiply equipment content per megawatt, and customers pay for reliability rather than lowest price
- Data centre standby orders have driven step-change revenue growth at leading engine makers
- Concentrated among a few large developers in a few metros, so the customer base is narrow and negotiating power is high
- Battery and hybrid systems are beginning to substitute for diesel in short-duration roles, though multi-hour autonomy remains diesel's domain