India’s data center market is experiencing an unprecedented expansion, driven by the growth of the digital economy, the increasing adoption of cloud services, and the rising demand for artificial intelligence (AI) technologies. As governments incentivize investments in the sector, the market is seeing substantial inflows, with India becoming a key player in the global data center ecosystem.
India’s Data Center Growth Outlook
According to Cushman & Wakefield (C&W), India added approximately 230 MW of data center capacity in 2024, bringing the country’s total capacity to 1.21 GW. In 2025, around 250 MW of additional data center capacity is expected to be commissioned, further strengthening India’s position in the global market.
A report by CBRE forecasts that India’s data center capacity will grow from 1,600 MW in 2024 to 2,070 MW by the end of 2025. The Indian data center market has already attracted $60 billion in investments over the past six years, and it is projected to exceed $100 billion by 2027, indicating strong growth potential.
As a result, several Indian companies are well-positioned to benefit from the data center boom. Here are five key stocks that investors should watch for potential growth in the sector:
1. Aurionpro Solutions
Aurionpro Solutions is a leading provider of technology solutions, including services related to banking, mobility, payments, insurance, and data centers. The company specializes in building enterprise data centers, colocation centers, and hyperscaler data centers.
In Q2FY25, Aurionpro reported a 32% YoY increase in revenue and a 34% YoY increase in net profit, totaling Rs 460 million. The company’s share price has increased by over 54% YTD. With a robust order book worth Rs 11.5 billion, the company is poised for further growth, particularly in AI-driven solutions and global market expansion.
2. Anant Raj
Anant Raj is primarily engaged in the development of IT parks, office complexes, and residential projects across India. The company has expanded into the data center space and is converting 5.66 million square feet of commercial property into a 300 MW data center.
In Q2FY25, Anant Raj reported a 55% YoY increase in revenue and a 75% YoY increase in net profit. The company’s share price has risen by over 177% YTD. In addition to its data center developments, Anant Raj signed a Memorandum of Understanding (MoU) with Google for providing data center infrastructure and cloud services, strengthening its position in the market. Motilal Oswal has set a price target of Rs 1,000 per share, suggesting a 31% upside potential from its current price.
3. Cummins India
Cummins India is a key supplier of backup power solutions for data centers, including generators, engines, and alternative fuel technologies. As data centers continue to grow, the demand for reliable power solutions is increasing, positioning Cummins as a critical player in the sector.
In Q2FY25, Cummins India reported a 31% increase in revenue and a 37.5% increase in net profit, totaling Rs 4.5 billion. The company’s share price has increased by 69% YTD. With a high PE ratio of 46.99, Cummins is seen as a strong growth candidate. The company expects double-digit revenue growth for FY25, driven by rising demand in the data center market.
4. ABB India
ABB India is a leading provider of critical infrastructure for data centers, including grid connections, power distribution, and cooling systems. The company is benefiting from the growing demand for energy-efficient and sustainable solutions in data center operations.
In Q2FY25, ABB India reported a 5.2% increase in revenue and a 21% increase in net profit, which reached Rs 4.4 billion. Its share price has grown by 60% in the past year, and it remains well-positioned for continued growth, supported by strong demand for sustainable infrastructure. Motilal Oswal predicts revenue growth of 15% to 20% for CY24 to CY26.
5. Voltas
Voltas is a leader in the commercial air conditioning market, offering tailored cooling solutions for data centers. As the demand for data storage grows, the need for reliable cooling systems becomes more critical, making Voltas a key player in the market.
Voltas has gained 74% YTD due to its strong presence in the data center cooling segment. With a high PE ratio of 101.73, the market expects strong long-term growth from the company. As India’s data center market is projected to surpass $100 billion by 2027, Voltas is positioned to benefit from continued demand for its cooling solutions.
Conclusion
India’s data center market is poised for significant growth, driven by the increasing demand for cloud services, AI technologies, and digital infrastructure. The five companies highlighted above—Aurionpro Solutions, Anant Raj, Cummins India, ABB India, and Voltas—are well-positioned to benefit from this growth. As India continues to strengthen its position as a global leader in digital infrastructure, these stocks offer promising opportunities for investors looking to tap into the booming data center sector.