Data Center Stocks in India: 9 Names to Research (2026)

Data center stocks in India fall into two groups: a handful of listed companies that own and lease data-centre capacity, and a larger group that supplies the servers, cooling, electrical gear and construction these facilities need. India’s biggest operators, such as Nxtra, Yotta, CtrlS and Sify’s data-centre arm, are either subsidiaries of larger groups or not listed in India, so most listed names give only partial exposure.

This article sets out the verified numbers on capacity, demand, power and policy, then profiles nine listed companies worth researching. For each one it states how much revenue actually comes from data centres. It ends with a comparison table, the valuation risk in numbers and a checklist. This is educational material, not a recommendation to buy or sell any security.

How big is India’s data-centre market?

According to a government factsheet released in September 2026, India’s installed data-centre capacity rose from about 375 MW in 2020 to 1.57 GW by August 2026, and is projected to reach nearly 8 GW by 2030. Capacity is measured in megawatts of power because power, not floor space, limits how many servers a building can run.

Private estimates differ because they count capacity differently. JLL put operational capacity at 1.6 GW in mid-2026 and expects it to reach 6 GW by 2029. It recorded 101 MW of absorption (capacity leased) and 85 MW of new supply in the first half of 2026, nearly all in Mumbai and Chennai, with hyperscalers (giant cloud firms such as Google, Microsoft and Amazon) taking 82% of absorption.

AI demand and big-tech commitments

AI training and inference need far more power per server rack than ordinary cloud work, which is why new campuses are being planned in hundreds of megawatts. Google broke ground on its AI hub in Visakhapatnam on 28 April 2026, a multi-campus project built with partners including AdaniConneX. In December 2025, Microsoft announced a US$17.5 billion India investment for 2026 to 2029, and Amazon announced over US$35 billion by 2030 across its businesses.

Power is the bottleneck

The Central Electricity Authority projects that data-centre power demand could reach 17 GW by 2031-32, more than ten times the August 2026 installed capacity. Each campus needs dedicated substations, transformers, switchgear, backup generators, UPS systems and cooling. This is why electrical and cooling companies appear in this list, and it links the theme to the grid spending covered in our guide to ancillary power stocks.

Policy support

• Infrastructure status (Budget 2022-23): data centres were added to the harmonised infrastructure list, which helps them borrow long-term at lower cost.
• Tax holiday till 2047 (Budget 2026-27): eligible foreign cloud providers that serve global customers from MeitY-notified Indian data centres pay no Indian tax on that income from tax year 2026-27 to 2046-47. Indian customers must be served through an Indian reseller, and a related Indian data-centre company gets a 15% safe-harbour margin on cost.
• IndiaAI Mission: an outlay of ₹10,371.92 crore, part of which subsidises GPU (graphics processor) compute for Indian users.
• State policies: several states offer land, power-tariff and stamp-duty incentives for data-centre parks.

9 data center stocks in India worth researching

Unless stated otherwise, market cap, P/E and ROCE (return on capital employed, operating profit as a share of the money invested in the business) are from Screener.in as of 1 October 2026. Borrowings are as of March 2026. Business figures come from Q1 FY27 results (April to June 2026). Companies are grouped by role, not ranked.

Operators and cloud providers

1. Anant Raj (real estate plus data centres). This Delhi-NCR developer runs 28 MW of IT load (21 MW at Manesar, 7 MW at Panchkula) and targets 63 MW by the end of FY27 and 357 MW by FY32. Data centre and allied services brought in about ₹90 crore of Q1 FY27 revenue of ₹631 crore, roughly 14%. In July 2026 the board approved a plan to demerge the business into Ashok Cloud, subject to approvals. Market cap is about ₹20,795 crore, P/E 35.9 and ROCE 12.1%, with borrowings of ₹681 crore.

2. Techno Electric & Engineering (EPC plus own data centres). Mostly a power transmission and smart-meter contractor with an order book of about ₹11,000 crore, Techno has opened its first Chennai data centre and is building in Noida (16 MW, targeted for Q4 FY27) and Kolkata. It has invested about ₹628 crore in data centres so far but guides for only ₹40 to 50 crore of data-centre revenue in FY27, about 1% of its FY27 revenue target of ₹4,000 crore. Market cap is about ₹11,614 crore, P/E 22.6 and ROCE 15.2%, with almost no debt (₹21 crore).

3. E2E Networks (GPU cloud). E2E rents out GPU computing for AI work and had about 5,100 GPUs live in Q1 FY27, with orders of about ₹265 crore from the IndiaAI Mission. Revenue jumped 334% to ₹157 crore in the quarter and it returned to a profit of ₹44 crore. It is close to a pure play on AI cloud capacity. Market cap is about ₹13,321 crore and trailing P/E 427, with ROCE slightly negative for FY26 and borrowings of ₹159 crore.

4. RailTel Corporation of India (PSU telecom, small data-centre arm). This Navratna PSU runs two Tier III data centres, in Gurugram and Secunderabad, and is rolling out about 102 edge data centres with Techno Electric. Most of its revenue comes from telecom and government ICT projects, and data-centre revenue is not reported separately. Market cap is about ₹8,255 crore, P/E 22.3 and ROCE 22.8%, with borrowings of ₹64 crore.

5. Bharti Airtel (through Nxtra). Airtel’s subsidiary Nxtra runs 14 large and over 120 edge data centres and has raised about US$1 billion to scale towards 1 GW. Nxtra’s FY26 revenue of about ₹2,430 crore was roughly 1.2% of Airtel’s consolidated revenue of ₹2,10,973 crore, so this is a telecom stock with a small data-centre slice. Market cap is about ₹10,86,728 crore, P/E 34.8 and ROCE 17.6%, with borrowings of ₹1,95,412 crore.

Equipment and service suppliers

6. Netweb Technologies (servers and AI systems). Netweb designs and builds high-performance computers, AI servers and private-cloud systems in India. AI systems made up about 62% of Q1 FY27 revenue, which rose 172% to ₹820 crore, and the confirmed order book was about ₹2,507 crore in June 2026. Market cap is about ₹26,872 crore, P/E 103 and ROCE 37.5%. Borrowings rose to ₹282 crore in March 2026 from ₹8 crore a year earlier as working capital grew.

7. Black Box (data-centre build-out and IT integration). Black Box installs cabling, networking and infrastructure in data centres. Data centres were about 17% of FY26 revenue and the company expects about 30% in FY27, with the order backlog at a record US$949 million (about ₹8,986 crore) in June 2026. Most of this work is for US customers, including hyperscalers, so it is not a pure India play. Market cap is about ₹14,134 crore, P/E 49.5 and ROCE 21.6%, with borrowings of ₹1,153 crore.

8. Blue Star (cooling and MEP projects). Best known for air conditioners, Blue Star also builds the mechanical, electrical and plumbing (MEP) systems inside data centres. Management has said it expects about ₹3,000 crore of data-centre MEP orders in FY27 and aims for data centres to be about 20% of revenue by FY29. Its carry-forward order book was ₹7,764 crore in June 2026. Market cap is about ₹30,012 crore, P/E 56.7 and ROCE 21.2%, with borrowings of ₹810 crore.

9. Schneider Electric Infrastructure (switchgear and transformers). The listed Indian arm of the French group makes medium-voltage switchgear, transformers and automation panels. It booked a record ₹915 crore of orders in Q1 FY27, including large data-centre orders, and more than a fifth of its ₹2,169 crore backlog comes from data centres, semiconductors and renewables together. Q1 profit fell about 70% to ₹12 crore on cost pressures. Market cap is about ₹30,495 crore, P/E 157 and ROCE 29.6%, with borrowings of ₹633 crore.

Names you cannot buy directly in India

Sify Technologies, parent of the large operator Sify Infinit Spaces, is listed on Nasdaq in the US, not on Indian exchanges. Sify Infinit Spaces received SEBI’s go-ahead for an Indian IPO in January 2026, but the issue was reported to be on hold over a valuation gap. Our guide on investing in the US stock market from India explains the route if you want US-listed shares. Yotta, CtrlS and NTT’s Indian business are unlisted, and AdaniConneX and Reliance’s data-centre ventures sit inside very large conglomerates.

Comparison table

Company	Role	Data-centre share of revenue	Market cap (₹ cr)	P/E	ROCE	Borrowings (₹ cr)
Bharti Airtel	Operator (Nxtra)	About 1.2% (FY26)	10,86,728	34.8	17.6%	1,95,412
Schneider Electric Infra	Electrical equipment	Not disclosed	30,495	157	29.6%	633
Blue Star	Cooling, MEP	Not disclosed; target about 20% by FY29	30,012	56.7	21.2%	810
Netweb Technologies	Servers, AI systems	AI systems about 62% (Q1 FY27)	26,872	103	37.5%	282
Anant Raj	Operator, real estate	About 14% (Q1 FY27)	20,795	35.9	12.1%	681
Black Box	Build-out, integration	About 17% (FY26)	14,134	49.5	21.6%	1,153
E2E Networks	GPU cloud	Nearly all	13,321	427	-0.5%	159
Techno Electric	EPC, operator	About 1% (FY27 guidance)	11,614	22.6	15.2%	21
RailTel	PSU telecom, operator	Not disclosed (small)	8,255	22.3	22.8%	64

Source: Screener.in (market cap, P/E, ROCE as of 1 October 2026; borrowings as of March 2026; consolidated where available, standalone for Techno Electric, RailTel, Netweb, E2E and Schneider) and company Q1 FY27 results and presentations.

Worked example: why exposure matters

Suppose Kavya reads that India’s data-centre capacity could grow fivefold by 2030 and wants to benefit. Consider two hypothetical companies, each with ₹1,000 crore of annual revenue.

• Company A earns 1% from data centres (₹10 crore). If that business doubles and the rest stays flat, total revenue rises to ₹1,010 crore, just 1%.
• Company B earns 60% from data centres (₹600 crore). If that business grows 50% and the rest stays flat, revenue rises by ₹300 crore to ₹1,300 crore, a 30% increase.

Airtel and Techno Electric are closer to Company A today; Netweb and E2E are closer to Company B. More exposure works in both directions, though: if AI spending slows, Company B’s revenue falls just as sharply.

The valuation risk, in numbers

The Nifty 50 traded at a P/E of about 19.2 on 1 October 2026. E2E trades at 427 times trailing earnings, Schneider at 157 and Netweb at 103. A P/E of 157 is an earnings yield (profit divided by price) of about 0.64%, and at 427 it is about 0.23%. If the multiple is unfamiliar, see our guide to the P/E ratio.

Several prices have already corrected. On 1 October 2026, RailTel was about 36% below its 52-week high (₹257 against ₹401), Blue Star about 28% below (₹1,460 against ₹2,033), Techno Electric about 28% below (₹999 against ₹1,392), Black Box about 28% below (₹796 against ₹1,104) and Netweb about 22% below (₹4,520 against ₹5,813). E2E, by contrast, was trading at ₹648 against a 52-week low of ₹183, more than three times higher.

A high multiple is not proof of overvaluation if profits really do grow fast, but it leaves little room for disappointment. Our article on how to tell if a stock is overvalued walks through the checks.

Other risks

• Customer concentration: a few hyperscalers take most new capacity, and they can build their own facilities or negotiate hard on price.
• Oversupply: many developers are announcing capacity at once. If AI demand cools, lease rates and occupancy can fall.
• Power and water: delays in grid connections, renewable supply or water permits can push back revenue for years.
• Capital intensity: operators spend heavily before earning rent, so debt and depreciation rise first. Techno Electric’s Q1 profit fell partly because of higher depreciation on new data centres.
• Technology change: GPU generations change every year or two, so a GPU cloud’s hardware loses value fast.

Because these stocks react to the same AI news, holding several of them is less diversified than it looks. Our guide to asset allocation explains how to size a theme within a portfolio.

Checklist for evaluating a data center stock

1. Measure exposure: find the data-centre revenue figure or segment. If the company does not disclose it, assume it is small.
2. Separate operating from planned capacity: for operators, compare live MW with targets and check how much is already leased.
3. Check where the demand is: some suppliers earn most of their data-centre revenue abroad, not in India.
4. Follow orders and margins: rising orders with falling profit, as at Schneider and Blue Star in Q1 FY27, can signal pricing or cost problems.
5. Watch debt and cash flow: operators and GPU clouds need large capital spending; check whether operating cash flow covers it.
6. Read corporate actions closely: demergers such as Anant Raj’s Ashok Cloud plan change what shareholders own and need regulatory approval.
7. Compare valuation: set the P/E against the company’s own history, its peers and the Nifty.

If you plan to hold a theme like this for years, our piece on long-term investment strategies covers how to stay disciplined through the swings.

FAQ

Which listed company is a pure data center play in India?

Very few are. E2E Networks earns nearly all its revenue from cloud and GPU computing, and Netweb earns most from servers and AI systems. Anant Raj’s data-centre business is about 14% of revenue and is set to be demerged.

Is Sify listed in India?

No. Sify Technologies is listed on Nasdaq in the US. Its data-centre subsidiary, Sify Infinit Spaces, has SEBI approval for an Indian IPO but had not listed as of early October 2026.

How much data-centre capacity does India have?

About 1.57 GW as of August 2026, according to a government factsheet, up from about 375 MW in 2020. Official projections put it near 8 GW by 2030; JLL expects about 6 GW by 2029.

What did Budget 2026 do for data centres?

It proposed a tax holiday until 2047 for eligible foreign cloud companies serving global customers from notified Indian data centres. Income from Indian customers stays taxable through an Indian reseller, and related Indian data-centre companies get a 15% safe-harbour margin on cost.

Are power equipment stocks a data center play?

Partly. Data centres need transformers, switchgear and cables, so companies like Schneider Electric Infrastructure win orders from them. For most such companies, utilities and industry remain the larger customers.