The Rapid Scale-up of Artificial Intelligence and Its Impact on Global Power Infrastructure
The rapid scale-up of artificial intelligence is quietly reshaping global power infrastructure. Training and deploying AI models now require vast data centres that operate continuously, without disruption. These facilities are among the most power-intensive industrial assets today. As server density rises and workloads become more compute-intensive, the reliance on reliable, uninterrupted electricity has moved to the centre of the AI investment story.
According to the International Energy Agency, electricity usage by data centres has grown at a 12% CAGR over the past five years to about 415 terawatt-hours. This figure is projected to more than double to roughly 945 TWh by 2030, with data centre demand growing over 4X faster than overall electricity consumption across other sectors between 2024 and 2030.
TD Power Systems: A Key Player in the Global Generator Market
TD Power Systems (TDPS) is a key player in the global generator market, which is estimated to reach $73 billion (over Rs 6 lakh crore) by 2029, up from $52 billion (over Rs 4.5 lakh crore) in 2025. The company manufactures AC generators and electric motors for power applications and operates across power generation, thermal systems, and renewable technologies.
TDPS provides customized engineering solutions for data centres, oil fields, and hydroelectric plants. It manufactures generators ranging from 1 to 250 MVA, positioning itself as a global leader in this space. The company is also present in electric motors, including induction motors (up to 20 MW), synchronous motors (up to 50 MW), and traction motors (up to 1,250 kW) for railway and industrial applications.
Expansion into the 40-45 MW Generator Space
To capture the growing demand, TDPS is evolving its technology to meet the higher power requirements of modern server farms. The company is moving into the 40-45 MW generator space, with these larger machines scheduled for delivery beginning in FY26. Beyond the 40-50 MW range, TDPS is also targeting the 60-70 MW space for even larger gas turbine applications.
For more information on TD Power Systems, visit our website. To learn more about AI data centres and their impact on the power infrastructure, read our latest article.
Financial Performance and Growth Prospects
TDPS has delivered a strong financial performance, with revenue increasing 42% year-on-year to Rs 824 crore in the first half of FY26. The Ebitda increased 47% to Rs 157 crore, while margin expanded 50 basis points to 18.9%. Net profit rose 46% to Rs 111 crore.
The company aims to achieve 20% margins once the third plant reaches full capacity and recovers costs. At Rs 674 per share, TDPS trades at a price-to-earnings multiple of 50 times, which is a premium to its historical 5Y median multiple (35).
Conclusion
In conclusion, TD Power Systems is well-positioned to capitalize on the growing demand for power generators driven by the rapid scale-up of artificial intelligence and data centres globally. With its strong financial performance, expansion into the 40-45 MW generator space, and growth prospects, TDPS is an attractive investment opportunity for investors looking to tap into the Indian stock market.
