TD Power Systems: A Key Player in the Global AI Data Centre Market
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 Global Leader in AC Generators and Electric Motors
TD Power Systems manufactures AC generators and electric motors for power applications. It operates across power generation, thermal systems, and renewable technologies, and provides customised engineering solutions for data centres, oil fields, and hydroelectric plants. The company’s generators are suitable for steam turbines and gas turbines (up to 250 MVA), hydro turbines (up to 75 MVA), and diesel engines (up to 25 MVA).
TD Power Systems is expanding its manufacturing footprint to support rising demand. 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 existing plant includes a 25% buffer, enabling short-term capacity growth without the need for new buildings.
Investment Opportunities in TD Power Systems
With the global generator market estimated to reach $73 billion (over Rs 6 lakh crore) by 2029, TD Power Systems presents a significant investment opportunity for Indian investors. The company’s share price has risen 75% over the last year, and it trades at a price-to-earnings multiple of 50 times, which is a premium to its historical 5Y median multiple (35).
To learn more about TD Power Systems stock price and its investment potential, read our detailed analysis. You can also explore other Indian power stocks and their performance in the market.
TD Power Systems’ Financial Performance
The company delivered a strong financial performance in the first half of FY26, with revenue increasing 42% year-on-year to Rs 824 crore. 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.
TD Power Systems aims to achieve 20% margins once the third plant reaches full capacity and recovers costs. The company is also establishing a design and engineering centre in the United Kingdom to bring it closer to its key global clients and promote innovation, localization, and advanced design compliance.
Conclusion
TD Power Systems is a key player in the global AI data centre market, with a strong presence in the US and Europe. The company’s AC generators and electric motors are in high demand, driven by the growing need for reliable and uninterrupted power supply. With a significant investment opportunity and a strong financial performance, TD Power Systems is an attractive option for Indian investors looking to diversify their portfolio.
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