‘India will play a bigger role in our global R&D’: Hitachi Energy CTO Gerhard Salge

In this interview, Gerhard Salge, executive vice-president and chief technology officer, tells Sudhir Chowdhary how power generation, transmission and industrial infrastructure must evolve to meet rising demand, why energy storage and power electronics are gaining importance, and how Indian engineering capabilities are shaping global technology priorities. Excerpts: India’s data centre capacity is expected to expand rapidly as AI adoption gathers pace.

How is this changing Hitachi Energy’s technology priorities, and which solutions are seeing the strongest demand here? Conventional data centres and artificial intelligence-specific facilities have different technology requirements, although these are largely consistent across global markets. This allows us to deploy globally developed technologies for customers in India. What distinguishes India is its holistic approach to planning data centre development alongside industrial electrification, power generation and transmission infrastructure.

The development of renewable energy parks, industrial infrastructure and electricity networks is being undertaken in a coordinated manner, which is important for meeting future electricity requirements. 6 trillion grid build-out AI data centres create sharp fluctuations in power demand. What new challenges does this pose for grid stability, and how are you addressing them? Artificial intelligence data centres experience sharp fluctuations in electricity demand as parallel graphics processing units switch on and off.

We are developing technologies in collaboration with data centre developers that combine energy storage with power electronics to manage these fluctuations close to their source. This prevents disturbances from affecting the wider electricity network while protecting equipment within data centres. As data centres expand and renewable energy becomes a larger part of the power mix, which technologies will be critical to ensuring a reliable and uninterrupted power supply?

Digitally controlled power electronics, combined with energy storage, will be critical for managing power flows and maintaining power quality. Gujarat and Rajasthan demonstrate how significant daily variations in solar generation can be managed securely and reliably. Grid-forming control is particularly important for maintaining stability during short-term fluctuations and changes in generation. However, the algorithms must be calibrated to the requirements of individual power systems to ensure they operate in coordination with the existing electricity network.

Grid connectivity is emerging as a bottleneck for data centre expansion. What needs to change in transmission infrastructure and grid planning to meet this growing demand? Grid connectivity presents a significant challenge in certain countries and regions. Several approaches are being considered, including fully grid-connected facilities with phased capacity expansion and hybrid arrangements combining grid supply with on-site generation.

We refer to the latter as 'bring your own flexibility'. Some developers are also considering off-grid operations, potentially transitioning to grid-connected arrangements subsequently. India has established a strong framework for coordinated planning across electricity demand, generation and transmission. Continuing this approach will be essential as electricity requirements increase. How is the rapid growth of digital infrastructure in markets such as India influencing Hitachi Energy’s global R&D priorities?

Are innovations developed for these markets finding applications elsewhere? India is one of our leading markets and research and development locations. Having completed 75 years in the country in 2024, our presence extends across manufacturing, technology development and the electricity value chain. India's growing electricity requirements, coordinated infrastructure planning and strong engineering talent make it central to our global strategy, with its contribution to research and development expected to become even more significant.

India is one of our principal global research and development locations, with significant capabilities in Bengaluru, Chennai and Vadodara. Our teams contribute to digital asset monitoring, digital services and HVDC control systems, developing technologies that are deployed across international markets. India's engineering talent and emphasis on innovation make it integral to our global technology development.

Where can AI make the biggest difference to power generation, transmission and grid management, and how do you see its role evolving over the next five years? We have been applying machine-learning technologies for several years. The emergence of agentic and physical artificial intelligence presents further opportunities, particularly in network control. As electricity systems become larger and more complex, artificial intelligence can support scenario planning, automated response mechanisms and operational efficiency.

However, human operators will retain responsibility for decision-making and final judgement. This combination will be increasingly important for managing future power systems cost-effectively.