Story perspectives

India Data Center Capacity Doubles, $12B Cooling Market Rises

4/29/2026

Summary

India Fuels Cooling

India’s data center capacity will rise from 1.5 GW to 3-3.5 GW, prompting $2-2.5 billion in cooling investments.
The cooling market is forecast to grow at a 26.3% CAGR through 2035, topping $12 billion.
KRN Heat Exchanger, Voltas and Blue Star will scale cooling solutions, with Blue Star launching liquid-cooling models 12 months.
Analysts warn that execution and semiconductor-supply risks could strain balance sheets, noting Blue Star’s INR38,890 crore market cap and KRN’s P/E above 115×.

Summary

KRN Wins Bid

KRN Heat Exchanger won the lowest-bid status for a prospective major client’s process covering over 90 SKUs.
The firm targets 50% of India’s data-center heat-exchanger market and plans capacity expansion to raise its segment-revenue share to 15% in Q3 FY26 from 7% a year earlier.
Its stock rose 73.58% in the past year to INR7,755 crore market cap while posting a 20.8% ROE and a 65% net-profit increase in Q3 FY26.

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India Fuels Cooling

India’s data center capacity will rise from 1.5 GW to 3-3.5 GW, prompting $2-2.5 billion in cooling investments.
The cooling market is forecast to grow at a 26.3% CAGR through 2035, topping $12 billion.
KRN Heat Exchanger, Voltas and Blue Star will scale cooling solutions, with Blue Star launching liquid-cooling models 12 months.
Analysts warn that execution and semiconductor-supply risks could strain balance sheets, noting Blue Star’s INR38,890 crore market cap and KRN’s P/E above 115×.

1 / 2