ICRA forecasts that India’s data centre (DC) operational capacity will rise to 2,000-2,100 MW by March 2027, up from approximately 1,150 MW in December 2024, with an investment ranging from Rs. 40,000-45,000 crore in FY2026-FY2027. This growth is driven by rising internet/data consumption and data localisation initiatives.
Additionally, established and new DC players, entering the sector in the past 3-4 years, have a development pipeline of 3.0-3.5 GW over the next 7-10 years, requiring investments of Rs. 2.0-2.3 lakh crore.
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.”
Here are a few Data Center stocks poised to drive this growth:
1. Anant Raj Ltd
With a market capitalization of Rs.16,915 crore, the share price of Anant Raj Ltd currently trading at Rs.495.30 per share on Wednesday, falling 3.4 percent from its previous close.
The real estate company is capitalizing on the increasing demand for data centers, utilizing its early-mover advantage with lower capital expenditure due to land ownership and existing infrastructure.
As of December 2024, the company has 6 MW of operational data center capacity and a proposed 307 MW capacity. It is transforming 5.66 million square feet of commercial space into a 157 MW data center, with projected rentals of Rs. 3,300 crore once fully operational. Furthermore, the company is investing Rs. 10,000 crore in developing a 300 MW facility.
In Q3FY25, the company reported a 36 percent year-on-year increase in revenue to Rs.535 crore and a 55 percent rise in net profit to Rs.110 crore.
Also read: Unicommerce eSolutions jumps after promoter increases stake in the Co.
2. Techno Electric & Engineering Company Ltd
With a market capitalization of Rs.10,369 crore, the share price of Techno Electric & Engineering Company Ltd currently trading at Rs.891.70 per share on Wednesday, falling 2.7 percent from its previous close.
As of October 2024, Techno Electric & Engineering Company Ltd. has a total data center stock of 19 million square feet, with an IT capacity of 1,255 MW. By December 2026, the company plans to expand its data center stock to 29 million square feet, increasing its total IT capacity to 1,628 MW, reflecting its strong growth strategy in the data center sector.
The engineering company is venturing into the data center development sector as an operator, planning to invest $1 billion to establish data centers with a total capacity of 250 MW across India by 2030.
Currently, it is constructing a 24 MW facility in Chennai. Additionally, the company can leverage its expertise in engineering, procurement, and construction to act as an EPC partner for other firms developing data centers in India.
In Q3FY25, the company reported a 94 percent year-on-year increase in revenue to Rs.636 crore and a 4 percent rise in net profit to Rs.96 crore.
3. Schneider Electric Infrastructure Ltd
With a market capitalization of Rs.14,400 crore, the share price of Schneider Electric Infrastructure Ltd currently trading at Rs.601.15 per share on Wednesday, falling 0.26 percent from its previous close.
Schneider Electric Infrastructure Ltd is strengthening its position in India’s growing data center and semiconductor sectors. The company is establishing National Data Centers in Delhi, Pune, Hyderabad, and Bhubaneswar, providing SITC of 11kV AIS panels. It has also supplied semiconductor power transformers to a major plant, with its SEIL product portfolio creating key industry references.
To meet growing global and domestic demand, Schneider plans to invest Rs.3,200 crore by 2026, enhancing its manufacturing capabilities and supporting the global data center market from India.
In Q3FY25, the company reported a 15 percent year-on-year increase in revenue to Rs.857 crore and a 22 percent rise in net profit to Rs.111 crore.
Written by – Siddesh S Raskar
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