Cooling the Cloud: Voltas Eyes Data Center Growth

Voltas, a major player in the room air-conditioner market, is aiming for robust double-digit growth in the upcoming summer season, supported by forecasts of normal or above-normal temperatures that are expected to spur demand.

Managing Director Mukundan Menon said the company is fully prepared for a seasonal uptick in sales and is targeting strong double-digit growth in the first quarter. To back its expansion plans, Voltas has increased its manufacturing capacity to about 3 million units across its facilities in Chennai and Pantnagar, with the ability to scale up production to 3.5 million units over the next two years.

Across the industry, the air-conditioner segment is projected to grow by 15–20 per cent in 2026 compared to the previous year, when unseasonal rains weighed on demand. At the same time, manufacturers are contending with rising input costs.

Voltas is evaluating a price increase of 5–15 per cent on new models, depending on the category. The proposed revision reflects higher commodity prices, the rupee’s depreciation against the dollar, and the rollout of updated energy labelling norms by the Bureau of Energy Efficiency (BEE). However, the GST rate cut announced last year is expected to partially offset the impact of higher prices for consumers.

Beyond its core residential air-conditioner business, Voltas is also exploring opportunities in the fast-growing data centre segment, viewing cooling solutions for such facilities as a promising avenue for future growth.

News by Rahul Yelligetti.