The data center market in India is expanding more than ever due to the rapid digitisation of the economy. Adoption of cloud computing, AI, 5G, and the digital economy is forcing businesses and governments to store, process, and manage enormous amounts of data. robust data infrastructure. Therefore, the data center stocks have come into sharper focus for longterm value investors. The last ten years have shown decent annual growth.
In the next sections, the readers will get familiar with this blog covering the top data center stocks. This blog will describe the growth trends in the industry as well as my reasons why one should consider this niche sector as the next big wealth creator in the Indian equity market.
Understanding Why Data Centers Are Growing in India
India is about to undergo a data revolution, holding nearly 2% of the world’s data center capacity, this number is forecasted to increase rapidly with data center investments exceeding $10 billion by 2027. .
The key drivers behind this boost are:
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Digital India programme and data localisation requirements.
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Growth in internet users, with projections to surpass 1.2 billon by 2030.
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The increasing adoption of cloud services by both SMEs and large enterprises.
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Dominance of global players like Amazon Web Services, Google Cloud, and Microsoft Azure.
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This shift in growth makes data center stocks a hot sector for domestic and foreign institutional investors looking for longterm exposure to the digital economy.
Why Investors Should Focus on Data Center Stocks in India
They are essential components of the digital infrastructure ecosystem. Data centers are used for various activities like video streaming, financial services and many more. As digital transformation occurs, companies that have good data center infrastructure are poised for growth.
Here are Key Reasons to Consider Investing in Data Center Stocks in India:
- Secular Growth Story: The data storage and cloud computing industry is growing at 25-30% CAGR.
- Resilient Business Models: Revenue generation is stable for data center companies since most of them use longterm contracts to get paid.
- Low Competition Segment: There are not many listed companies in the data center industry. The few that exist stand to benefit from being early investors.
- Government Support: Policy changes that offer low taxes are drawing more investment into the data infrastructure in India.
Best Data center Stocks in India that are Listed on NSE and BSE
Now let's go through the top data center stocks in India based on market cap, P/E ration, and other important financial metrics available on the exchanges and connected to the rapidly developing sector.
1. Netweb Technologies India
About
Netweb Technologies India Ltd. focuses on the digital infrastructure domain. They offer sophisticated solutions for high-performance computing (HPC), artificial intelligence (AI) systems, and data centers. Founded in 1999, the company branded “Tyrone” designs and manufactures the servers, storage and supercomputing systems.
Netweb caters to BFSI, healthcare, research, and defence. Netweb has strong R&D capabilities which focus on customised enterprise IT solutions. They recently allied with NVIDIA for expanding Netweb’s AI hardware capabilities. They are also building their own data centers, making Netweb an integrated tech player in the industry.
Netweb Technologies share price is Rs. 1960 as of 23 July 2025, at the time of writing this information.
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Financial Snapshot
(Image Source- Netweb filing)
Shareholding Pattern
2. E2E Networks
About
E2E Networks Ltd is an Indian company that operates in the niche segment of cloud computing and provides ICT infrastructural services. Established in 2009, the firm focuses on Startups and Enterprises with services like GPU cloud, compute instances, and AI platforms.
E2E is one of the few Indian firms that provides public cloud services in competition with global players like AWS and Google Cloud. The company has increased in popularity in the AI/ML domains and operates its own data centers. The company’s unique model of maintaining no assets helps increase its profitability and scalability, to meet the growing demand from the cloud infrastructure and data sovereignty demand.
E2E Networks share price is Rs. 2371 as of 23 July 2025, at the time of writing this information.
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3. Allied Digital Services
About
Allied Digital Services Ltd. is an emerging and growing IT infrastructure and services company based in Mumbai and is now being recognised for making strides in the data center industry.
The company provides comprehensive services that include cloud computing, cybersecurity, managed services, and smart city infrastructure. Allied Digital is strategically expanding its data center facilities to Tier II and Tier III cities in India. With a global footprint, the company serves clients in the U.S., Europe, and Asia.
Allied Digital is setting up multiple data centers which leverage its expertise in digital transformation to emerging clouds and data localisation. The company is strengthening its competitive edge in the industry by focusing on automation, analytics, and green IT.
Allied Digital Services share price is Rs. 178 as of 23 July 2025, at the time of writing this information.
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4. Aurionpro Solutions
About
Aurionpro Solutions Ltd. is in India's digital infrastructure and enterprise technology sectors and is becoming more active in the data center industry. The company focuses on key areas like fintech, cybersecurity, and smart city solutions. One of its notable subsidiaries, Cyberinc, focuses on identity access and zero-trust security which is critical for data center operations.
Apart from this, Aurionpro is also active in the construction and management of smart data centers for both government and private clients. Its proprietary approach involves the provision of integrated platforms composed of software, hardware, and consulting. The company stands to gain from India’s data economy because of the surge in digitisation and smart infrastructure spending.
Aurionpro share price is Rs. 1447 as of 23 July 2025, at the time of writing this information.
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5. Black Box Ltd.
About
Black Box Ltd. is one of the best global providers of IT solutions with offered services including data center design, cybersecurity, cloud services, networking and infrastructure services. It is a subsidiary of AGC Networks which is a part of Essar Group, operates in more than thirty countries.
In India, Black Box has established a name as a prominent supplier in the development of scalable and secure data centers for governments and enterprises. The company which has a presence in diverse industries such as telecom, BFSI, manufacturing and even healthcare, specialises in managed services and digital transformations, which help in maintaining critical IT infrastructure.
Black Box share price is Rs. 518 as of 23 July 2025, at the time of writing this information.
Share Details
Financial Snapshot
Shareholding Pattern
(Sources: Screener, companies websites)
Upcoming IPOs and Unlisted Data Center Players
There is still a lot of potential for data center stocks. Many privately owned companies are expanding and are expected to go public soon.
CtrlS Datacenters: The company operates Asia’s largest Tier 4 data center and is looking to go public in the next 12 years.
Yotta Infrastructure (Hiranandani Group): The company recently launched India's largest data center park in Navi Mumbai.
STT GDC India: Singapore Telecom backs this company. It is one of India’s largest data center operators, serving 9 cities.
Explore top railway stocks.
Benefits of Investing in Data Center Stocks in India
Investing in data center stocks has particular strategic benefits as a result of the country’s growing reliance on data-driven technologies. These benefits offer center stocks in India a place in a forward-thinking investment portfolio.
Exposure to a Digital Sector with High Growth Potential: Investing now in India’s data center stocks is promising as it is forecasted to grow at a CAGR of 25%-30% over the next five years. Investing now provides exposure to a sector that is forecasted to enjoy explosive growth in the years to come.
Supported by Government Policies: The industry has favourable headwinds such as Data center Policy 2020, PLI schemes, and data localisation policies. These policies directly impact and support data center stocks.
Predictable Cash Flows: The long contracts data center operators renew with clients translate to favourable cash flows with steady and predictable earnings. This offers a defensive buffer during volatile periods in the market.
First Mover Advantage and Low Competition: The number of top data center stocks in India is quite limited. This allows early adopters to invest and capture significant long-term value before the rush to invest drives stocks prices up once the market is saturated.
Risks Associated with Investing in Data Center Stocks
While the potential upside of data center stocks is promising, the following risks need to be evaluated:
High Capital Intensity: Cash flows are put under immense strain owing to the massive upfront expenditure needed to construct the data center.
Regulatory Challenges: Compliance hurdles, privacy policies, data localisation, etc. can all adversely impact the data center’s profits.
Technological Obsolescence: New innovations in edge computing and AI technologies can and will challenge the conventional data center infrastructure.
Indirect Exposure: The majority of publicly traded stocks in India are not data center companies, thus the upside potential is limited.
Future Outlook: The Global Data Center Market Expansion
India's position in the AsiaPacific data center market is especially interesting with the country projected to only be behind China by 2030. The country’s data center market is expected to grow from 870 MW in 2023 to a staggering 2.5 GW by 2030 that might give boom to data center stocks.
Noteworthy drivers of this growth include:
5G Rollout: Edge data centers will be needed in cities and towns.
Demand for AI and ML Workloads: The need for GPUenabled hyperscale centers will rise.
SaaS and Fintech Startups: There is a surge in adoption by Indian businesses which are digital natives.
Green Data Centers: Increasing focus on environmentally sustainable data centers spurs investment growth.
This is particularly beneficial for top data center stocks in India for those with a longer investment outlook of 5-10 years.
Conclusion: Worth Investing in Data Center Stocks in India?
For longterm investors looking to surf the next digital wave, data center stocks are a worthy consideration. The opportunity is still in the infancy stage, which is a positive sign for longterm outperformance relative to growth driven by strategic investment fundamentals, supportive regulations, and enterprise cloud services.
Disclaimer
Not a buy or sell recommendation. No investment or trading advice is given. This blog is only for information purposes. Always discuss with an eligible financial advisor before investing.
Faqs
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Which data centre share is best in India?
As per market cap and other financial metrics some good data center stocks in India are Netweb Technologies, E2E Networks, Black Box etc.
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Can I invest in data centres?
Yes you can invest if you have a demat account, are 18+ and carry required documents.
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Which is the hub of data center in India?
Mumbai, India has become the hub of data center in India.
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What are data center stocks?
Data centre stocks are investments in companies that build, operate, or service a data centre that stores and processes digital information. Stocks of such companies are supported by the demand for cloud computing, AI applications, and other digital products.
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Which is the No 1 data center in India?
Yotta NM1 located in Mumbai is among the top 5 data centers in India as per RCR wireless news.
