India’s Data Center Capacity Set to Double by 2027 – Stocks to Watch for Maximum Gains
Stocks to Watch : India’s data center (DC) industry is on the verge of exponential growth, with its operational capacity expected to reach 2,000-2,100 MW by March 2027. This expansion, up from approximately 1,150 MW in December 2024, is driven by increasing internet usage, the rollout of 5G, and stringent data localization policies. According to ICRA, the sector is set to attract investments between ₹40,000-45,000 crore in FY2026-FY2027.
Additionally, both established and new data center players have a development pipeline of 3.0-3.5 GW over the next 7-10 years, requiring investments of around ₹2.0-2.3 lakh crore. This unprecedented expansion presents a golden opportunity for investors looking to capitalize on the growth of data center-related stocks.
Let’s take a deep dive into the key stocks poised to benefit from India’s booming data center industry.
1. Anant Raj Ltd – A Real Estate Giant Transforming into a Data Center Powerhouse
Anant Raj Ltd, a leading real estate developer, is rapidly capitalizing on the growing demand for data centers. The company benefits from low capital expenditure due to its existing land ownership and infrastructure, giving it a competitive edge in the sector.
- Current Market Cap: ₹16,915 crore
- Stock Price (March 2025): ₹495.30 per share (-3.4% from the previous close)
- Operational Data Center Capacity (Dec 2024): 6 MW
- Proposed Data Center Capacity: 307 MW
- Revenue (Q3FY25): ₹535 crore (+36% YoY)
- Net Profit (Q3FY25): ₹110 crore (+55% YoY)
The company is currently transforming 5.66 million sq. ft. of commercial space into a 157 MW data center, with projected rentals of ₹3,300 crore once fully operational. Additionally, Anant Raj is investing ₹10,000 crore in a new 300 MW facility, marking a major step in its journey to become a key player in India’s data center industry.
2. Techno Electric & Engineering – A New Data Center Player with Big Ambitions
Techno Electric & Engineering, traditionally known for its expertise in power and EPC (Engineering, Procurement, and Construction), is making a strategic shift into data center development.
- Current Market Cap: ₹10,369 crore
- Stock Price (March 2025): ₹891.70 per share (-2.7% from the previous close)
- Existing Data Center Stock (Oct 2024): 19 million sq. ft. (1,255 MW IT capacity)
- Planned Data Center Stock (Dec 2026): 29 million sq. ft. (1,628 MW IT capacity)
- Revenue (Q3FY25): ₹636 crore (+94% YoY)
- Net Profit (Q3FY25): ₹96 crore (+4% YoY)
The company plans to invest $1 billion to set up data centers with a total capacity of 250 MW by 2030. Currently, Techno Electric is developing a 24 MW data center in Chennai, while leveraging its EPC expertise to assist other data center developers in India.
3. Schneider Electric Infrastructure Ltd – Strengthening India’s Digital Backbone
Schneider Electric Infrastructure Ltd (SEIL) is another major player benefiting from the rising demand for data centers and semiconductor facilities in India.
- Current Market Cap: ₹14,400 crore
- Stock Price (March 2025): ₹601.15 per share (-0.26% from the previous close)
- Revenue (Q3FY25): ₹857 crore (+15% YoY)
- Net Profit (Q3FY25): ₹111 crore (+22% YoY)
Schneider is playing a crucial role in establishing National Data Centers in Delhi, Pune, Hyderabad, and Bhubaneswar, providing SITC of 11kV AIS panels. The company is also a leading supplier of semiconductor power transformers, reinforcing its position in India’s high-tech infrastructure landscape.
Schneider plans to invest ₹3,200 crore by 2026 to enhance its manufacturing capabilities and support global data center demand from India.
Financial Snapshot of Key Data Center Stocks
| Company | Market Cap (₹ Crore) | Stock Price (₹) | Data Center Capacity | Revenue (Q3FY25) | Net Profit (Q3FY25) |
|---|---|---|---|---|---|
| Anant Raj Ltd | 16,915 | 495.30 | 6 MW (Operational), 307 MW (Proposed) | 535 crore (+36% YoY) | 110 crore (+55% YoY) |
| Techno Electric | 10,369 | 891.70 | 19M sq. ft. (Existing), 29M sq. ft. (Planned) | 636 crore (+94% YoY) | 96 crore (+4% YoY) |
| Schneider Electric | 14,400 | 601.15 | National Data Centers in Delhi, Pune, Hyderabad, Bhubaneswar | 857 crore (+15% YoY) | 111 crore (+22% YoY) |
Conclusion
India’s data center sector is witnessing unprecedented growth, fueled by digital transformation, increased cloud adoption, and supportive government policies. Companies like Anant Raj, Techno Electric, and Schneider Electric are strategically positioning themselves to capitalize on this trend, making them top picks for investors looking to benefit from this high-growth sector.
Frequently Asked Questions (FAQs)
1. Why is India’s data center capacity expected to double by 2027?
India’s data center expansion is driven by increasing internet consumption, 5G rollout, IoT growth, and data localization laws. ICRA predicts the sector will grow to 2,000-2,100 MW by March 2027.
2. Which are the top stocks benefiting from India’s data center boom?
Anant Raj Ltd, Techno Electric & Engineering, and Schneider Electric Infrastructure Ltd are key players poised to benefit from India’s data center expansion.
3. How is Anant Raj Ltd capitalizing on this opportunity?
Anant Raj Ltd is leveraging its real estate holdings to build data centers. It has 6 MW operational capacity and is developing a 307 MW facility, with a ₹10,000 crore investment in a 300 MW data center.
4. What makes Techno Electric & Engineering a strong contender in this space?
Techno Electric is investing $1 billion in data center projects and leveraging its EPC expertise to develop 250 MW capacity by 2030.
5. How is Schneider Electric contributing to India’s data center growth?
Schneider Electric is developing National Data Centers in multiple cities and investing ₹3,200 crore by 2026 to boost its manufacturing capabilities.
India’s data center revolution is just beginning, and these stocks could be key beneficiaries of this multi-billion-dollar opportunity. 🚀
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.