The Rise of AI and Data Centres: A New Era for 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. This dependence is becoming visible in energy consumption trends. 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.
Global Generator Market: A Rs 6-Lakh-Crore Opportunity
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. The global generator market 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, per TD Power Systems, supported by data centres, gas-based power generation, and clean energy applications.
TD Power Systems is well-positioned to capitalize on this growing demand. The company manufactures AC generators and electric motors for power applications, operating across power generation, thermal systems, and renewable technologies. It provides customized engineering solutions for data centres, oil fields, and hydroelectric plants, with a strong presence in the US and Europe.
TD Power Systems: A Global Leader in Generators
TDPS manufactures generators ranging from 1 to 250 MVA, suitable for steam turbines and gas turbines (up to 250 MVA), hydro turbines (up to 75 MVA), and diesel engines (up to 25 MVA). Beyond generators, TDPS 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.
This diversification enables TDPS to participate across multiple end markets. The company also serves niche segments, including geothermal and solar thermal power plants, marine and naval power systems, and specialized testing facilities. TDPS has a global after-sales network of 57 service centers that provide diagnostics, overhaul, and spare parts support.
Expanding Manufacturing Footprint and Technology
To support rising demand, TDPS is expanding its manufacturing footprint. A third manufacturing facility in Tumkur is being commissioned in phases and is fully operational from December 2025. The plant is designed to support larger generators, motors, and critical sub-assemblies.
The company is also moving into the 40–45 MW generator space, with 2-pole generators designed for larger gas turbines and gas engines. These larger machines are scheduled for delivery beginning in FY26, with a massive scale-up expected from FY27. Beyond the 40–50 MW range, TDPS is also targeting the 60–70 MW space for even larger gas turbine applications.
Strong 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). However, it trades at a discount to larger competitors such as CG Power (88), Hitachi Energy (111), and GE Vernova T&D (81).
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