As India’s digital economy surges, leading infrastructure developers are ramping up investments in data centre (DC) facilities, creating a ripple effect across supporting industries-particularly the steel sector. Companies such as Larsen & Toubro (L&T) and Techno Electric & Engineering Co. have recently announced major expansions in urban tech hubs, with combined investments exceeding ₹4,600 crore.
L&T is set to invest around ₹3,600 crore to develop large-scale data centres in Bengaluru, Panvel, and Mahape, responding to growing demand from cloud service providers, fintech companies, and government digital initiatives. According to reports, approximately 20 per cent of DC capital expenditure (capex) is directed towards steel-intensive construction elements such as real estate shells, HVAC support frames, racks, and electrical enclosures. This trend is opening up new growth avenues for manufacturers of structural steel and pre-engineered building systems.
Meanwhile, Techno Electric & Engineering Co. has launched a new subsidiary dedicated to digital infrastructure, with an initial focus on building a 36 MW data centre in Chennai. The company is anchoring this as part of a ₹1 billion investment network, targeting both domestic and global data-heavy clients. As reported, the project will require substantial amounts of structural steel for building frames, server enclosures, mechanical support systems, and security infrastructure.
With India’s data centre capacity projected to reach over 2.1 GW by 2025, the demand for steel in high-load infrastructure is poised to grow in parallel. These developments not only strengthen India’s position as a regional data hub but also signal a steady pipeline of steel consumption in digital infrastructure projects.
