India’s data center (DC) sector is on the brink of exponential growth. According to a report by ICRA, the country’s operational DC capacity is expected to increase from 1,150 MW in December 2024 to a remarkable 2,000-2,100 MW by March 2027.
This massive expansion, driven by rising data consumption, digital adoption, and data localization requirements, is set to attract investments of ₹40,000-45,000 crore in FY2026-FY2027 alone. Over the next 7-10 years, both established and new players in the DC industry have outlined development plans for an additional 3.0-3.5 GW of Data Center Capacity, translating to an estimated investment of ₹2-2.3 lakh crore.
Expert Insights
Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, shared:
“While cloud, 5G roll-out, machine learning, and the internet of things (IoT) are expected to drive significant data and storage needs. The global DC market has already seen large deals (>300 MW) signed by hyperscalers, a trend expected to extend to India. This, combined with supportive regulatory policies and the recognition of the DC sector as infrastructure, will foster strong growth in India’s data centre industry over the next decade.”
Stocks Benefiting from the Data Center Revolution
Here are some key companies promised to capitalize India Data center Growth:
1. Anant Raj Ltd
Anant Raj Ltd was incorporated in 1985 as Anant Raj Clay Products by Ashok Sarin. It is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls and residential projects in the State of Delhi, Haryana, Andhra Pradesh, Rajasthan and NCR.
- Market Cap: ₹ 16,771 Cr.
- Current Price: ₹ 491
- High / Low: ₹ 948 / 282
- Stock P/E: 43.5
- Industry PE: 27.9
- Market Position: With a market capitalization of ₹16,915 crore, Anant Raj Ltd is leveraging its early-mover advantage in the DC space.
- Current Operations: The company currently operates 6 MW of DC capacity and plans to expand it to 307 MW, primarily by repurposing 5.66 million square feet of commercial space. Once fully operational, this facility is expected to generate annual rentals of ₹3,300 crore.
- Future Investments: Anant Raj has committed ₹10,000 crore toward developing a 300 MW DC facility.
- Financials: In Q3FY25, the company’s revenue rose by 36% YoY to ₹535 crore, while net profit surged by 55% to ₹110 crore.
- Stock Performance: The stock is currently trading at ₹495.30 per share, reflecting a 3.4% decline from its previous close.
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2. Techno Electric & Engineering Company Ltd
Techno Electric & Engineering Company Ltd (TEECL) is engaged in providing Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the power infrastructure industry.
- Market Cap: ₹ 10,474 Cr.
- Current Price: ₹ 901
- High / Low: ₹ 1,825 / 607
- Stock P/E: 32.6
- Industry PE: 30.4
- Market Position: With a market capitalization of ₹10,369 crore, this engineering firm is making significant strides in the DC sector.
- Operational Capacity: As of October 2024, the company manages 19 million square feet of DC space, offering an IT capacity of 1,255 MW. It plans to expand this to 29 million square feet with an IT capacity of 1,628 MW by December 2026.
- Future Ventures: Techno Electric is investing $1 billion to establish DCs with a combined capacity of 250 MW by 2030. It is also constructing a 24 MW facility in Chennai and acting as an EPC (engineering, procurement, and construction) partner for other companies.
- Financials: In Q3FY25, the company recorded a 94% YoY increase in revenue to ₹636 crore and a 4% rise in net profit to ₹96 crore.
- Stock Performance: The stock is priced at ₹891.70, reflecting a 2.7% dip from its previous close.
3. Schneider Electric Infrastructure Ltd
Schneider Electric Infrastructure Limited, incorporated in 2011, is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for the electricity network.
- Market Cap: ₹ 14,535 Cr.
- Current Price: ₹ 608
- High / Low: ₹ 980 / 567
- Stock P/E: 71.5
- Industry PE: 45.6
- Market Position: With a market capitalization of ₹14,400 crore, Schneider is strengthening its foothold in India’s DC and semiconductor industries.
- Expansion Plans: The company is building National Data Centers in Delhi, Pune, Hyderabad, and Bhubaneswar. To support global and domestic demand, Schneider has announced a ₹3,200 crore investment to scale up its manufacturing capabilities by 2026.
- Key Projects: It is supplying advanced equipment like 11kV AIS panels and semiconductor power transformers to support major DC projects.
- Financials: In Q3FY25, Schneider reported a 15% YoY increase in revenue to ₹857 crore and a 22% rise in net profit to ₹111 crore.
- Stock Performance: The stock currently trades at ₹601.15, down 0.26% from its previous close.
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