India’s data centre sector is poised for a significant transformation, with operational capacity expected to almost double to 2,000–2,100 MW by March 2027, as per a report by ICRA. This growth is being driven by rising internet penetration, supportive government policies on data localisation, and surging demand for AI and cloud-based services. The sector is likely to attract investments worth ₹2 to ₹2.3 lakh crore over the next 7 to 10 years.

Key Growth Drivers

Stocks to Watch: Who Benefits from This Boom?

Real Estate & Infrastructure- These players provide the land and connectivity required for setting up massive data centres.

• DLF Ltd.- Recently partnered with HPE for a green data centre in Chennai. DLF’s commercial real estate arm is expanding into hyperscale-grade facilities.
• Adani Enterprises Ltd.- Through AdaniConneX, it targets 1 GW of data centre capacity across key Indian cities.
• Larsen & Toubro (L&T)- Engineering and construction major that designs and builds data centres across India, including Tier-IV compliant campuses.

Power & Renewable Energy- With energy costs forming ~40–50% of operating expenses for data centres, reliable power supply is critical.

• NTPC Ltd.- India’s leading power producer is stepping into the data centre energy ecosystem, aiming to provide reliable and sustainable electricity to support growing infrastructure demands.
• Tata Power Company Ltd.- Partnering with multiple data centres to provide green energy and advanced grid support solutions.
• Sterlite Technologies (STL)- Provides high-speed fiber optic networks and energy-efficient technologies tailored for large-scale hyperscale data centre deployments.

Telecom & Connectivity- Reliable, high-bandwidth networks are crucial for data transfer, edge computing, and cloud connectivity.

• Bharti Airtel- via its subsidiary Nxtra by Airtel, is expanding its data centre footprint across India, currently operating 12 large-scale and 120 edge data centres to keep pace with the growing digital demand.
• Reliance Industries (via Jio Platforms)- Jio is investing heavily in digital infrastructure, with plans for edge cloud and data hosting via Jio Cloud.

IT & Data Centre Services- Companies offering system integration, cooling tech, software-defined infrastructure, and more.

• Tech Mahindra- Recently announced a partnership to offer AI-powered edge computing solutions.
• HCL Tech- Provides infrastructure management, data migration, and cloud-native services for hyperscalers.
• Tata Communications- Offers colocation, cloud hosting, and interconnectivity solutions to global and Indian enterprises.

Investor Takeaway

As India aims to become a global data hub, the ecosystem around data centres is becoming a structural growth story, not just a cyclical theme.

The convergence of real estate, energy, telecom, and tech makes the data centre opportunity a multi-sector investment theme potentially reshaping India's digital and economic landscape by 2027.

Conclusion

India’s data centre boom marks a long-term digital infrastructure shift, driven by AI, 5G, and cloud demand. With ₹2 to ₹2.3 lakh crore investments expected companies across real estate, power, telecom, and IT stand to benefit. For investors, this is a multi-sector opportunity to participate in India’s transformation into a global data hub.

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