Kirloskar Oil Engines shares hit 20% upper circuit after securing major AI data centre power systems order

Kirloskar Oil Engines Ltd (KOEL) witnessed strong buying interest on Monday, June 22, with the stock hitting its 20% upper circuit after the company announced a significant order from HyperNext for a large-scale AI-focused data centre project in India.

The company has secured a contract to provide 192 MW of backup power capacity for HyperNext’s hyperscale AI data centre infrastructure. The development is being viewed as a major milestone for KOEL as demand for reliable power solutions continues to grow alongside the rapid expansion of artificial intelligence and cloud computing infrastructure.

Under the order, Kirloskar Oil Engines will supply 96 units of its 2,500 kVA Optiprime Dual Core power generation systems. These advanced backup power solutions are designed to support mission-critical operations, ensuring uninterrupted power for AI-enabled and cloud-ready data centre facilities.

According to the company, the project will support India’s first data centre featuring an 800VDC power architecture, a next-generation design aimed at improving energy efficiency and meeting the intensive computing requirements of AI workloads. The infrastructure is expected to cater to the increasing demand for high-performance computing, cloud services, and digital transformation initiatives across industries.

The order highlights KOEL’s growing presence in the data centre power solutions segment, a market witnessing strong momentum due to rising investments in AI, machine learning, and cloud technologies. Reliable backup power systems have become a critical component of modern data centres, where even brief power interruptions can lead to significant operational disruptions.

Industry experts believe India’s data centre sector is entering a new phase of growth, driven by increasing digital adoption, data localization requirements, and the rapid expansion of AI applications. The HyperNext project further reinforces the need for scalable and efficient power infrastructure to support next-generation digital ecosystems.

With this landmark order, Kirloskar Oil Engines strengthens its position as a key provider of power generation solutions for emerging technology infrastructure projects in India.