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India's Data Centre Boom Fuels Stock Surges Amid AI Demand
AI, data centre boom powers these 9 stocks up to 477% in 2026. Can you still join the party?
Image: The Economic Times
India's data centre industry is experiencing rapid growth, with IT load projected to reach 1.5-1.6 GW by 2025, driven by digitalisation and AI demand. Stocks linked to this sector have surged, with some rising by up to 477% in 2026, prompting investors to consider future opportunities.
- 01India's data centre IT load has grown from 350 MW in 2019 to nearly 1.5-1.6 GW in 2025, a CAGR of about 29%.
- 02Sterlite Technologies has seen a remarkable 488% increase in stock value in 2026, bolstered by a $1 billion order from a US hyperscaler.
- 03Nomura identifies GE Vernova T&D India and CG Power as top beneficiaries of the data centre expansion, with target prices indicating potential upside.
- 04HFCL reported a turnaround with a 170% stock increase in 2026, doubling revenue year-on-year to ₹1,824 crore.
- 05Netweb Technologies has gained nearly 60% in 2026, supported by government-backed AI infrastructure projects.
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India's data centre market is poised for significant growth, driven by digitalisation, cloud adoption, and increasing demand for artificial intelligence (AI). According to Nomura, the country's data centre IT load is expected to rise from 350 MW in 2019 to approximately 1.5-1.6 GW by 2025, reflecting a compound annual growth rate (CAGR) of about 29%. This expansion has led to remarkable stock performance, with companies like Sterlite Technologies soaring by 488% in 2026, following a major order win. Other notable performers include HFCL, which gained 170% after reporting a substantial revenue increase. Nomura has highlighted several key players in the sector, including GE Vernova T&D India and CG Power, both of which are well-positioned to benefit from rising investments in data centres. The overall sentiment among analysts is optimistic, suggesting that despite significant gains already made, the data centre buildout in India is still in its early stages, leaving room for further growth and investment opportunities.
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The growth of the data centre industry in India is expected to create numerous job opportunities and drive investments in related sectors.
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