CG Power enters data centre segment, wins Rs 900-cr order from Tallgrass for power transformers

Amar Kaul, global CEO and managing director, said the deal marks a 'strategic platform win' for the company as it marks its foray into the 'rapidly growing' data centre segment.

• CG Power wins Rs 900 crore US order for power transformers for data centres
• Order is group's largest ever and will be delivered over 12 to 20 months
• Transformers will be designed and made in India for hyperscale data centre use

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CG Power and Industrial Solutions has forayed into the global data centre industry after securing a large-scale project in the US worth approximately Rs 900 crore from Tallgrass Integrated Logistics Solutions for the supply of power transformers, the company said in a stock filing on January 18.

The engineering conglomerate said the data centre project is the “largest single order” ever won by the group and a direct export order for its power transformers.

The company will supply power transformers under the agreement, tailored to meet the requirements of a hyperscale data centre applications, the exchange filing said.

The order will be executed over a delivery period of 12 to 20 months, the company said.

Amar Kaul, global CEO and managing director, said the deal marks a “strategic platform win” for the company as it marks its foray into the “rapidly growing” data centre segment.

“It validates our capability to deliver globally benchmarked, mission-critical technology solutions from India, and reinforces our position as a trusted global partner in applications where reliability and performance are non-negotiable,” Kaul said in a statement.

Kaul added that the global move towards cloud computing, artificial intelligence and other digital infrastructure is “reshaping the power demand”.

“We believe this win opens up a significant long-term opportunity pipeline in global data center projects, aligned with our global growth and margin-accretive expansion strategy,” he said.

The transformers, before being shipped, will be designed and manufactured at the company’s “state-of-the-art” facilities in India, the statement added.

“CG’s selection for this project underscores its engineering depth, advanced manufacturing capabilities, and disciplined execution using CG EDGE, its operating rhythm, which enables translation of strategy into consistent execution at scale,” the company statement said.

The company's stock in the last trading session on January 16 closed 2.82 percent lower at Rs 560.65 on NSE.