4 Data Center Stocks in India to Watch as Opportunities Surge

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May 30, 2026 - 4 Data Center Stocks in India to Watch as Opportunities Surge

4 Data Center Stocks in India to Watch as Opportunities Surge

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The rapid growth of AI, cloud computing, digital payments and enterprise digitisation has led to a surge in demand for data storage and high-performance computing infrastructure in India, making AI data center stocks more relevant.

AI workloads require robust servers, advanced networking, cooling and uninterrupted power, creating opportunities for firms in data centres, telecom infrastructure, power equipment and digital engineering.

The long-term outlook is further strengthened by the growing number of internet users in India, government support for AI and semiconductors and expansion plans of global cloud giants.

Over time, AI data centers may become as strategically important to the digital economy as highways and telecom towers were to earlier phases of economic development.

But investors should be wary of high capital expenditure needs, power consumption issues and valuation risks in AI-themed stocks.

Here are 4 stocks related to AI data centers which have ambitious plans for the future.

This is not a stock recommendation.

#1 Sterlite Technologies

Sterlite Technologies is a global leader in advanced connectivity solutions, providing end-to-end solutions for building AI-ready infrastructure, FTTx, Rural, Enterprise and Data Centre networks.

Sterlite Technologies provides Data Center Interconnect expertise to enable operators to build interconnect infrastructure that scales efficiently, meets the strictest global standards and keeps pace with the accelerating demands of AI-era data centers.

The company is also a specialist in Data Center Whitespace. This refers to a purpose-built space that features a data center facility where critical IT infrastructure - concerning compute, storage, and networking - is installed, alongside the power and cooling systems that support it.

The company helps organisations to maximise whitespace utilisation, reduce operational complexity and build data centre environments that scale seamlessly as business demands evolve.

Sterlite Technologies continues to leverage its "Glass-to-Data Center" vertical integration to architect the physical layer of the AI era. By integrating glass science with precision manufacturing, the company is co-creating advanced high density, low-latency solutions.

Sterlite Technologies Financial Snapshot (FY23 to FY25)

Year Ending March 2023 March 2024 March 2025 Net Sales (m) 69,250.0 40,830.0 39,960.0 Sales Growth % 27.4 -41.1 -2.1 Net Profit (m) 2,310.0 -710.0 -720.0 ROCE % 20.4 7.2 4.8

Source: Equitymaster

On the financial front, the company reported revenues of Rs 14.41 bn for Q4 FY26 and Rs 47.45 bn for FY26, a growth of 14.7% QoQ and 18.8% YoY.

In FY26, Sterlite Technologies delivered EBITDA margins at 13.2% and EBITDA of Rs 6,280 m. The 3-year average ROE of the company was placed at 3.7% and the average ROCE was placed at 10.8%.

The year was characterised by a transformative 110% surge in order intake over FY25. This indicates strong revenue visibility and sets the stage for sustained growth in the coming quarters.

The open order book at the end of FY26 stands at Rs 73.09 bn, supported by large-scale data-centre and telecom projects across its key markets - North America, Europe, and India.

During FY26, Sterlite Technologies formed strong partnerships with international customers including Colt, Netomnia, Mynet, SLICFiber, and Swoop. Key markets in North America, the United Kingdom, Europe, and Asia experienced robust momentum.

The expansion of data centres powered by AI is a significant advantage for Sterlite Technologies. The increasing demand from hyperscalers is driving the need for optical fibre and connectivity.

With the global capacity set to double by 2030, the company stands to gain through increased orders, establishing itself as a vital infrastructure provider within the AI ecosystem.

To know more check the Sterlite Technologies fact sheet and latest quarterly results.

#2 Anant Raj Anant Raj is an Indian real estate and infrastructure developer primarily focused on residential housing, commercial projects, IT parks, malls, hospitality projects, and increasingly, data centres. The company was founded in 1969 and is headquartered in New Delhi. A growth driver for Anant Raj is its expansion into the data center and cloud infrastructure business through subsidiaries like Anant Raj Cloud. In FY26, Anant Raj Cloud Pvt Ltd expanded the Data Centers and Cloud business, with 21 MW IT load capacity operational at Manesar and 7 MW at Panchkula, targeting 357 MW total IT load capacity by FY32. Anant Raj has signed an MOU with the Government of Andhra Pradesh for setting up additional data center capacity of 50 MW IT Load, strengthening the company's footprint in South of India. With this plan, the total planned Data Center capacity will reach to 357 MW IT Load, mix of Colocation and Cloud Services, out of which 117 MW IT Load will commence by FY 2028. The company is empanelled with Ministry of Electronics and Information Technology as a Sovereign Cloud Service Provider and BSNL as a Data Centre Service Provider. This positions it to serve government, telecom, and enterprise digital infrastructure businesses. Anant Raj also has a strategic partnership with Spain-based AI solution provider i.e. Submer to develop operational, AI-ready, liquid-cooled data centers across India, enabling rapid deployment of high-density, energy-efficient platforms for sovereign and enterprise AI workloads at scale. Anant Raj Financial Snapshot (FY23 to FY25) Year Ending (Rs m) March 2023 March 2024 March 2025 Net Sales 9,569.0 14,833.0 20,600.0 Sales Growth % 107.2 55.0 38.9 Net Profit 1,444.0 2,645.0 4,215.0 ROCE % 6.2 8.6 11.0 Source: Equitymaster

For Q4 FY26, revenue from operations (including income from data centers) stood at Rs 6.46 billion (bn), up 19.64% YoY. Revenue from data center, infrastructure and allied services was Rs 745.1 m. Net profit grew 25.19% YoY to Rs 1,487.1 m. The prospects of Anant Raj appear promising due to growth in data centres, cloud infrastructure, and Delhi-NCR real estate demand. Expansion into AI-linked digital infrastructure could support. To know more check the Anant Raj Industries fact sheet and latest quarterly results. #3 Bharti Airtel Next on our list is the stock of Bharti Airtel. The company is a global communications solutions provider with over 650 m customers in 15 countries across India and Africa. The company also has its presence in Bangladesh and Sri Lanka through its associate entities. Bharti Airtel is ranked second among mobile operators globally. Its networks cover over 2 billion people. In data centers, the management in a recent earnings concall of May 2026, has said that despite the investments the company has put in, they aren't a big player in the data center market. Bharti Airtel has a 10-12% share. The company is now making steady progress with its ambition of building 1 GW capacity over the next few years. To augment this journey, Nxtra announced a US$ 1 bn fund raiser for marquee investors alongside participation from Airtel. The company sees this as a strong validation of both the scale of the opportunity and its execution capabilities in this business. Nxtra is also leading the construction of Google's data center buildings and connecting infrastructure, enabling Google to deploy advanced AI capabilities and scale digital services across India. This is a part of Google's US$ 15 bn investment over five years (2026-2030) to establish a comprehensive AI ecosystem in India. Bharti Airtel Financial Snapshot (FY23 to FY25) Year Ending March 2023 March 2024 March 2025 Net Sales (m) 1,391,448.0 1,499,824.0 1,729,852.0 Sales Growth % 19.4 7.8 15.3 Net Profit (m) 122,874.0 85,580.0 374,813.0 ROCE % 15.7 16.6 27.6 Source: Equitymaster

On the financial front, the company delivered another year of strong performance. The consolidated revenue in FY26 hit a new high of Rs 2,110 bn, due to strong performance in both India and Africa. EBITDA came in at about Rs 1,080 bn with a margin of 51.2%. The sustained operational excellence was underpinned by its portfolio premiumization, sharp execution and tight control over cost. Looking ahead, the management of Bharti Airtel in a recent concall has stated they continue to see large growth opportunities across mobility led by ARPU growth through portfolio premiumisation and postpaid, rapid expansion of homes and across B2B. The company sees a potential in upgradation with data consumption in 5G, handset upgrades from feature phones and international roaming offer large head room for growth. Bharti Airtel is taking steps in accelerating postpaid growth by driving differentiation. The rural network expansion program continues and contributes significantly to its growth momentum. At the same time, its investments are directed to building digital businesses and new growth bets at scale to future proof Airtel and its long-term growth. Digital acceleration remains at the core of its strategy with AI increasingly embedded across the businesses at scale. To know more check the Bharti Airtel fact sheet and latest quarterly results. #4 KRN Heat Exchanger and Refrigeration Next on the list is the stock of KRN Heat Exchanger and Refrigeration. The company is an Indian manufacturer specialising in heat exchangers used in HVAC (heating, ventilation, air conditioning), refrigeration, and industrial cooling systems. Its products include condenser coils, evaporator coils, and customized cooling solutions. The data center boom and AI boosts demand for companies like KRN Heat Exchanger and Refrigeration because cooling is mission-critical. Data centers generate massive heat from servers and require efficient HVAC and heat exchange systems to maintain uptime. The company supplies condenser and evaporator coils used in these cooling systems. The data center business is growing for KRN Heat Exchangers. The company has some good orders from the data center front and some of these are with long lead times. In Q4FY26 KRN Heat Exchanger and Refrigeration achieved around 18.7% revenues from AI data centers alone. KRN Heat Exchanger and Refrigeration Financial Snapshot (FY23 to FY25) Year Ending March 2023 March 2024 March 2025 Net Sales (m) 2,475.0 3,083.0 4,298.0 Sales Growth % 58.5 24.6 39.4 Net Profit (m) 324.0 394.0 529.0 ROCE % 63.8 43.3 15.5 Source: Equitymaster

On the financial front, KRN Heat Exchangers and Refrigeration reported total income at Rs 18,140 m in 4Q FY26, up 33.5% YoY, while EBITDA increased by 77.56% to Rs 335.5 m, and net profit rose by 57.14% to Rs 233.6 YoY. As per the management, the environment remained supportive, with demand across sectors such as data centers, infrastructure, and mobility. The company will focus on execution - managing raw material volatility, improving efficiency, or working on backward integration. The effort has been to keep the business steady while scaling up. As the new plant ramps up further, KRN Heat Exchanger expects operating leverage to start playing clearly. To know more check the KRN Heat Exchanger and Refrigeration fact sheet and quarterly results. Should You Consider Data Center AI Stocks? Data center and AI-related stocks could become important long-term investment themes as artificial intelligence, cloud computing, digital payments, 5G, and enterprise digitisation increase demand for high-performance computing infrastructure. In India, growth in data localisation, government digital initiatives, and rising internet usage may support expansion of data centers, power equipment, cooling systems, semiconductors, cables, and renewable energy integration. However, investors should still be selective because valuations in some AI and data center stocks can become expensive during hype cycles. High capital expenditure, power availability issues, execution risks, technology changes, and competition could affect profitability. Focusing on companies with strong balance sheets, scalable business models, and sustainable earnings growth may be more important than simply chasing AI-related narratives. Happy investing. --- Advertisement ---

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