CG Power Secures Record ₹900 Crore Order for US Data Center

Introduction to the Landmark Deal

CG Power and Industrial Solutions Ltd, a Murugappa Group company, announced on January 17, 2026, that it has secured a landmark contract valued at approximately ₹900 crore ($19.2 million). The order comes from Tallgrass Integrated Logistics Solutions LLC, a US-based firm, for a large-scale data center project. This deal is not only the largest single order in CG Power's history but also marks its strategic entry into the rapidly expanding global data center market, positioning the Indian engineering giant as a key player in a high-growth vertical.

Details of the Record-Breaking Order

The contract involves the design, manufacturing, and supply of power transformers specifically engineered for the demanding requirements of hyperscale data centers. These facilities require extremely high levels of reliability, efficiency, and uninterrupted power, and CG Power's transformers are set to meet these stringent standards. The direct export order will be executed over a period of 12 to 20 months. The delivery terms are specified as FAS (Free Alongside Ship) Mumbai Port, in accordance with Incoterms 2020, meaning CG Power is responsible for delivering the goods to the port and clearing them for export.

A Strategic Win for Global Expansion

Amar Kaul, the Global CEO and Managing Director of CG Power, described the order as a significant "strategic platform win." He emphasized that the deal validates the company's ability to deliver mission-critical, globally benchmarked technology solutions directly from India. This achievement reinforces CG Power's reputation as a trusted global partner for applications where performance and reliability are non-negotiable. The entry into the data center segment is a calculated move to capitalize on a burgeoning market and diversify the company's international footprint.

The Growing Data Center Market

The demand for data centers is surging globally, driven by the widespread adoption of cloud computing, the rise of artificial intelligence (AI), and the expansion of digital infrastructure. These technologies are fundamentally reshaping global power consumption patterns, creating a substantial need for specialized power solutions. Mr. Kaul noted that this trend opens up a significant long-term opportunity pipeline for CG Power in global data center projects. The successful acquisition of this contract aligns perfectly with the company's strategy for global growth and margin-accretive expansion.

Key Order Details

Manufacturing and Execution Excellence

All transformers for this project will be designed, manufactured, and tested at CG Power's advanced facilities in India. The company's selection for this critical project highlights its deep engineering expertise, state-of-the-art manufacturing infrastructure, and a disciplined execution framework. CG Power attributes its operational success to its 'CG EDGE' model, an operating rhythm that focuses on translating strategic goals into consistent and scalable execution. This framework was a key factor in securing the confidence of its American client for such a high-stakes project.

Market Impact and Stock Performance

News of the landmark order places CG Power in the spotlight. While the deal signals strong long-term growth potential, the company's stock performance showed a slight downturn in the preceding session. On Friday, January 16, 2026, shares of CG Power and Industrial Solutions Ltd closed 2.82% lower at ₹560.65 on the National Stock Exchange (NSE). Investors will be closely watching how this major order win influences the stock's trajectory and the company's financial performance in the upcoming quarters.

Conclusion and Future Outlook

CG Power's ₹900 crore order from Tallgrass is a pivotal achievement that firmly establishes its presence in the global data center supply chain. It showcases the company's technical prowess and India's growing capability in manufacturing high-end engineering products for the world. This strategic entry into a high-demand sector is expected to unlock new revenue streams and foster long-term growth, aligning with the company's vision of becoming a global leader in technology solutions.