The digital infrastructure in India is approaching a critical juncture, with data centres forming a crucial enabler of the technology ecosystem in the country. The surge in cloud adoption, artificial intelligence workloads, localisation of data demands and consumption of digital services have all directly contributed to a significant rise in the volume of secure, scalable and reliable infrastructure for data storage and processing. The total operational data centre capacity in India was around 917 megawatts as of June, 2024 and it is likely to reach close to 1.7 gigawatts by December 2026, according to industry sources – representing a rise of more than 60% in a relatively short time, categorising India as a strategic market within the global digital infrastructure value chain.
Data centre stocks are shares in companies that build, own, run, or help with data centre infrastructure and digital services. These companies work in many areas, such as making data centre buildings, colocation services, managed hosting, cloud infrastructure, powerful computer hardware, and systems integration.
Data centre businesses are not like most tech companies. They need a lot of money and are focused on infrastructure. They usually have to spend a lot of money at first on land, power, cooling, and network connections. But once they start, data centres get money from long-term contracts.
| Company | Listed entity type / role in data centre value chain | Indicative market capitalisation (₹ crore, Jan 2026) |
| Reliance Industries Limited | Diversified conglomerate; Jio operates hyperscale data centres and cloud partnerships | ~19,70,000 to 19,80,000 |
| Bharti Airtel Limited | Integrated telecom operator; Nxtra Data runs colocation and cloud data centres | ~12,12,000 to 12,28,000 |
| Tata Communications Limited | Digital infrastructure and network services provider; joint venture stake in STT GDC India | ~49,900 to 51,000 |
| Ananth Raj Limited | Real estate and infrastructure developer pivoting to data centre park development | ~19,800 to 19,900 |
| Netweb Technologies India Limited | High-performance computing, AI systems, and private cloud hardware supplier | ~19,800 to 19,900 |
| Black Box Limited | Digital infrastructure and systems integration partner | ~8,650 to 8,700 |
| Railtel Corporation of India Limited | PSU telecom and digital infrastructure provider operating data centres and ICT platforms | ~11,100 to 11,300 |
| Aurionpro Solutions Limited | Digital infrastructure, cyber security, and data centre modernisation solutions provider | Mid-cap IT and infrastructure company in the low five-digit crore range |
| Orient Technologies Limited | IT infrastructure and data centre solutions provider | Small- to mid-cap; sub-₹2,000 crore segment |
| E2E Networks Limited | Cloud and GPU infrastructure provider operating own data centres | Small- to mid-cap; low-thousand-crore range |
Data centre stocks are best suited for investors with a medium to long-term investment horizon, typically exceeding three years. The sector demands patience, as profitability often lags initial capital deployment due to extended construction and ramp-up timelines. Investors should also be comfortable with moderate to high risk, given sensitivity to interest rates, power costs, and execution challenges.
Institutional investors, high net worth individuals, and equity-orientated mutual funds may find the sector attractive as part of a diversified portfolio aligned to India’s digital growth narrative. Conservative investors seeking short-term stability or regular income should approach the sector with caution.
Data centre stocks are good for investors who plan to invest for more than three years. This sector needs a lot of patience because it takes time to make a profit. Investors start to see profits only after spending a lot of money and waiting for construction and ramp-up to finish. Investors in these stocks should be okay with taking medium to high risks. This sector is very sensitive to changes in interest rates, power costs, and how well the projects are carried out.
People or groups who should invest in data centre stocks are institutional investors, high net worth individuals, and equity-focused mutual funds. Data centre stocks could be a good choice for these investors as part of a balanced portfolio. The reason is that the digital growth story of India is still strong. Conservative investors or people looking for stable prices or regular income in the short term need to be careful about buying stocks from this sector.
The main benefits of data centre stocks are that they offer exposure to long-term structural growth drivers like migration to the cloud, adoption of Artificial Intelligence (AI), 5G rollout and data localisation policy. Data centres are increasingly being classified as critical infrastructure, so there is a regulatory tailwind and limited chances of obsolescence. Additionally, higher interest rates tend to pressure valuations and financing costs for infrastructure-heavy businesses.
India’s data centre industry is witnessing explosive growth in the digital infrastructure space. With total capacity expected to touch 1.7 gigawatts by December 2026 from the current 0.9 gigawatts (December 2023), growing at a CAGR of 24%, there is a long runway for the industry to grow. The upsurge is rooted in digital adoption-linked themes such as the roll-out of 5G, the pandemic-induced push for remote working and video consumption, internet penetration, and increasing cloud adoption by enterprises.
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