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Hitachi Energy could make further investments in India as demand for power-grid equipment grows, with CEO Andreas Schierenbeck saying the company is ready to expand capacity if customers commit to buying its products.
“If I find enough customers who are willing to commit to the offtake of the products, then we would build more,” Schierenbeck told CNBC-TV18. “If the numbers are there, we would build more. We would invest more.”
The company is investing more than $9 billion globally to expand manufacturing capacity as the power-grid industry struggles to keep pace with a surge in demand, driven in part by the rapid expansion of artificial intelligence (AI) data centres.
Schierenbeck said India is among Hitachi Energy's fastest-growing markets and praised the country's approach to energy and grid development.
Hitachi Energy is expanding its engineering centre in Chennai after hiring 2,000 employees, with plans to recruit more, Schierenbeck said.
The company follows an “India for India and India for the world” strategy, using the country both to serve domestic demand and as a base for exports. He cited India's pool of engineering talent as a key reason for expanding its operations.
Demand is growing for products manufactured in India, including circuit breakers and transformers, as well as engineering resources that support the company's global operations.
India's grid and energy strategy has developed significantly over the past 10–15 years, Schierenbeck said, pointing to grid connectivity, stable frequency and the expansion of renewable energy.
Schierenbeck said energy availability is emerging as a key constraint on AI adoption, as data centres require significantly more power than they did a few years ago.
“The AI adoption is definitely driven by how much energy could be supplied,” he said, describing energy supply as a major constraint for the technology.
He cited data-centre projects with capacities of two, four or five gigawatts, compared with facilities requiring tens of megawatts a few years ago. He also stressed that rising demand is not limited to AI, with industrial electrification and electric vehicles adding to the need for grid expansion.
Schierenbeck said the power-grid industry's manufacturing capacity is not keeping pace with demand.
“Actually, we are not coping. Demand and supply is not in balance at the moment. At the moment, there is much, much more demand than supply,” he said.
Hitachi Energy is expanding existing manufacturing sites and building new facilities, but the timelines are difficult to align. Data centres can be built in around two years, while grid expansion plans can take 10–15 years, individual grid projects five to six years and manufacturing facilities three to four years, he said.
Schierenbeck said manufacturers need better long-term visibility from customers to justify investments in additional factories. He called for closer partnerships, longer-term planning, framework agreements and capacity reservations to accelerate expansion.
The company sees demand visibility extending 10–15 years ahead in regulated markets, where grid operators have approved investment plans and capital expenditure budgets. Schierenbeck said customers were spending three to five times more than they did around five years ago.
Hitachi Energy's global backlog stretches six to seven years, he said, identifying the company's ability to execute projects and manage supply chains as its biggest risk.
For India, further capacity additions will depend on customers committing to orders, rather than any constraint on the company's ability to finance investment, Schierenbeck said.
Also read: Ultra-luxury hospitality firm Kerzner International eyes first India deal in 2027: CEO Zuber
“If I find enough customers who are willing to commit to the offtake of the products, then we would build more,” Schierenbeck told CNBC-TV18. “If the numbers are there, we would build more. We would invest more.”
The company is investing more than $9 billion globally to expand manufacturing capacity as the power-grid industry struggles to keep pace with a surge in demand, driven in part by the rapid expansion of artificial intelligence (AI) data centres.
Schierenbeck said India is among Hitachi Energy's fastest-growing markets and praised the country's approach to energy and grid development.
It's (India is) one of the best I know in the world, very diligent, and we're happy to support wherever we can, HITACHI ENERGY CEO ANDREAS SCHIERENBECK
Hitachi Energy expands India engineering hub
Hitachi Energy is expanding its engineering centre in Chennai after hiring 2,000 employees, with plans to recruit more, Schierenbeck said.
The company follows an “India for India and India for the world” strategy, using the country both to serve domestic demand and as a base for exports. He cited India's pool of engineering talent as a key reason for expanding its operations.
Demand is growing for products manufactured in India, including circuit breakers and transformers, as well as engineering resources that support the company's global operations.
India's grid and energy strategy has developed significantly over the past 10–15 years, Schierenbeck said, pointing to grid connectivity, stable frequency and the expansion of renewable energy.
AI data centres add to power demand
Schierenbeck said energy availability is emerging as a key constraint on AI adoption, as data centres require significantly more power than they did a few years ago.
“The AI adoption is definitely driven by how much energy could be supplied,” he said, describing energy supply as a major constraint for the technology.
He cited data-centre projects with capacities of two, four or five gigawatts, compared with facilities requiring tens of megawatts a few years ago. He also stressed that rising demand is not limited to AI, with industrial electrification and electric vehicles adding to the need for grid expansion.
‘We are not coping’ with demand
Schierenbeck said the power-grid industry's manufacturing capacity is not keeping pace with demand.
“Actually, we are not coping. Demand and supply is not in balance at the moment. At the moment, there is much, much more demand than supply,” he said.
Hitachi Energy is expanding existing manufacturing sites and building new facilities, but the timelines are difficult to align. Data centres can be built in around two years, while grid expansion plans can take 10–15 years, individual grid projects five to six years and manufacturing facilities three to four years, he said.
Schierenbeck said manufacturers need better long-term visibility from customers to justify investments in additional factories. He called for closer partnerships, longer-term planning, framework agreements and capacity reservations to accelerate expansion.
The company sees demand visibility extending 10–15 years ahead in regulated markets, where grid operators have approved investment plans and capital expenditure budgets. Schierenbeck said customers were spending three to five times more than they did around five years ago.
Hitachi Energy's global backlog stretches six to seven years, he said, identifying the company's ability to execute projects and manage supply chains as its biggest risk.
For India, further capacity additions will depend on customers committing to orders, rather than any constraint on the company's ability to finance investment, Schierenbeck said.
Also read: Ultra-luxury hospitality firm Kerzner International eyes first India deal in 2027: CEO Zuber
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