Danfoss to Invest ₹1,500 Crore in India for Data Centre Cooling and Heat Pumps Expansion
Danfoss India plans to invest ₹1,500 crore over the next five years to enhance production of compressors and battery energy storage systems, driven by demand for data centre cooling solutions and energy-efficient technologies like heat pumps. The company aims to increase localization from 57% to 80% by 2030 and double its compressor plant capacity in Bengaluru. Danfoss recorded €9.4 billion in total sales for 2025, with a significant growth forecast in the data centre segment.
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Danfoss India will invest ₹1,500 crore over the next five years to boost production of compressors and battery energy storage systems, targeting the growing demand in data centre cooling and energy-efficient solutions like heat pumps. Currently, localization is 57%, with a goal to reach 80% by 2030.
The company plans to double its compressor plant capacity in Bengaluru. In 2025, total sales reached €9.4 billion, and data centre sales accounted for 7% of turnover, expected to rise to 10-11% in 2026. The ongoing US-Iran conflict is anticipated to challenge growth due to supply chain disruptions and rising freight costs.
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