Data Centers Are Booming in India: 5 Proxy Stocks to Watch

#2 Blue Star

Next on the list is Blue Star.

The company offers one of India's widest portfolios of room air conditioners, along with commercial refrigeration and air conditioning solutions.

Its capabilities extend beyond products, with turnkey expertise in MEP (Mechanical, Electrical, Plumbing and Fire-fighting) contracting for buildings, factories, data centers, and other large infrastructure projects.

Blue Star's Electro-Mechanical Projects and Commercial Air Conditioning Systems segment covers the end-to-end design, installation, and maintenance of central air conditioning solutions.

This includes packaged and ducted systems, Variable Refrigerant Flow (VRF) units, scroll, screw and centrifugal chillers, as well as specialised data center chillers for high-performance environments.

In FY25, the company strengthened its data center offering by expanding its chiller portfolio with air-cooled chillers in the 350TR to 550TR range.

Given the critical role of cooling and MEP infrastructure in data center operations, Blue Star is as a proxy for the data center sector.

On the financial front, over the past five years the company's revenue has seen a growth of 17.4%, meanwhile, net profit grew at a CAGR of 33.3%.

The company's five-year average ROE and ROCE stand at 18.6% and 26.5%.

Blue Star's Financial Snapshot

For more details, see the Blue Star company fact sheet and quarterly results.

#3 Voltas

Next on the list is Voltas.

Established in 1954 through a partnership between Tata Sons and Volkart Brothers, Voltas Limited has emerged as India's largest Air Conditioning company and one of the leading engineering solutions providers.

Voltas also provides cooling systems for data centers.

The company's Commercial Air Conditioning (CAC) division has seen steady growth, driven by innovation and an expanding portfolio tailored to large-scale cooling needs.

A key focus has been the development of indigenised centrifugal chillers at its Waghodia facility, specifically suited for high-capacity, mission-critical environments.

These solutions are increasingly relevant for data centers, where uninterrupted operations, high energy efficiency and precise temperature control are essential.

With the long-term tax exemption encouraging global cloud players to scale data center capacity in India, the rising demand for efficient cooling solutions makes Voltas a stock to watch.

As cooling infrastructure is a core component of data center operations, Voltas is a proxy play in the data center theme.

On the financial front, over the past five years the company's revenue has grown at 15% CAGR, meanwhile, net profit grew at a CAGR of 9.9%.

The company's five-year average ROE and ROCE stand at 7.9% and 12.2%.

Voltas' Financial Snapshot

For more details, see the Voltas company fact sheet and quarterly results.

• Transformers

#4 Voltamp Transformers

Next on the list is Voltamp Transformers.

Voltamp Transformers Limited (VTL) is a well-established manufacturer of energy-efficient transformers, backed by over 62 years of industry experience.

The company specialises in the design, manufacture, and supply of both oil-filled and dry-type transformers, catering to a wide range of end-user segments including steel, cement, power, and data centers.

According to its FY25 annual report, a key growth lever remains the momentum in green energy projects, data center projects supported by consistent policy direction and investment under India's energy transition programs.

Given the increasing power requirements of data centers and the need for efficient, high-reliability transformers, Voltamp Transformers emerges as a proxy for the data center.

On the financial front, over the past five years the company's revenue has seen a growth of 17.6%, meanwhile, net profit grew at a CAGR of 29.5%.

The company's five-year average ROE and ROCE stand at 17.8% and 23.2%.

Voltamp Transformers' Financial Snapshot

For more details, see the Voltamp Transformers company fact sheet and quarterly results.

#5 Transformers & Rectifiers India

Last on the list is Transformers & Rectifiers India (TRAIL).

Transformers and Rectifiers (India) Limited (TARIL) has established itself as a leading player in the Indian transformer industry, offering a wide range of products that meet the quality standards of both domestic and international markets.

Over more than 45 years, the company has grown into the largest private-sector transformer manufacturing facility in India, with one of the widest product portfolios in the industry.

With three state-of-the-art manufacturing units, TARIL has positioned itself as a preferred partner for high-voltage power transformers and reactors globally.

Its diversified product range includes power transformers up to 500 MVA and 1,200 kV class, furnace transformers, rectifier and distribution transformers, as well as speciality transformers designed for specific applications.

The company serves customers across India on a pan-India basis and caters to multiple end-user segments, including utilities, infrastructure, electronics, and data centers.

The rapid expansion of data centers, driven by the digital economy, has emerged as a key demand driver, as these energy-intensive facilities require dedicated high-capacity transformers and reliable backup systems.

Given its capabilities in high-voltage and speciality transformers and its exposure to data center power infrastructure, Transformers & Rectifiers India stands out as a proxy to the data center theme.

On the financial front, over the past five years the company's revenue has seen a growth of 23.5%, meanwhile, net profit grew at a CAGR of 190.3%.

The company's five-year average ROE and ROCE stand at 8.5% and 19.5%.

Transformers & Rectifiers India' Financial Snapshot

For more details, see the Transformers & Rectifiers company fact sheet and quarterly results.

Conclusion

India's data center and cloud market is witnessing strong momentum, supported by rapid digital transformation, rising data consumption, data localisation norms, and government initiatives such as Digital India.

The accelerating adoption of AI, IoT, and 5G is further driving demand for scalable cloud and colocation infrastructure, while hyperscale cloud providers continue to expand their footprint.

At the same time, domestic enterprises are increasingly migrating workloads to the cloud, reinforcing long-term demand visibility.

Against this backdrop, not only data center operators but also proxy stocks linked to power equipment, cooling solutions, and infrastructure services are set to see sustained traction.

As investments in digital infrastructure gather pace, proxies are well-positioned for growth.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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