India’s data center industry is expanding rapidly amid increasing demand for Artificial Intelligence (AI) and digital services. According to the report of international brokerage firm Nomura, India’s data center capacity has increased from about 350 MW in 2019 to 1.5-1.6 gigawatt in 2025. This represents an annual growth rate of approximately 29%, which is much higher than the global average of 20%.
The impact of increasing investment in data centres, cloud computing and AI infrastructure is clearly visible on the stock market as well. Shares of many companies related to this theme have given excellent returns in 2026.
Sterlite Tech and HFCL become investors’ favorites
The biggest jump in the data center theme has been seen in the shares of Sterlite Technologies. The company’s shares have increased by about 488% in 2026. After receiving an order of $ 1 billion from a big hyperscaler company of America, analysts expect further growth in it.
At the same time, HFCL has also given excellent returns to investors. The company’s shares have jumped nearly 170% this year. Both the company’s revenue and profit remained strong in the March quarter, which has increased the confidence of investors.
Power and equipment companies will also benefit
Nomura believes that the increase in data center construction in India will also provide huge benefits to power and electrical equipment manufacturing companies. The brokerage has listed GE Vernova T&D India, CG Power, ABB India, Siemens India, Hitachi Energy India and Cummins India among the key gainers in the sector.
In particular, CG Power is expected to directly benefit from increasing data center investment in India and the US. The company has recently received a big order for transformer supply for a big data center project in America.
Also keep an eye on cable and AI hardware companies
Apar Industries may benefit from the increasing demand for data center cables. The company is already supplying cables to many big data center projects in America and is also increasing its production capacity.
At the same time, players providing AI servers and high-performance computing solutions like Netweb Technologies are also benefiting from increasing spending on AI infrastructure. The company’s shares have risen by 147% in the last one year.
The growth story is still pending
Experts believe that the AI and data center industry in India is still in its initial stage. The demand for data storage, cloud services and AI applications is likely to increase rapidly in the coming years. In such a situation, many companies related to power, equipment, cable and technology can become big beneficiaries of this development journey. However, investors should invest wisely keeping in mind the high valuations and market risks.
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