Industry projections indicate a robust expansion, with built capacity expected to grow from 1.6 GW in December 2025 to 5 GW by 2030, representing a 26% CAGR.
This build-out is supported by an active pipeline exceeding 3GW, which necessitates an estimated capital expenditure of approximately US$ 25 billion (bn) over the next five years.
As this ecosystem matures, it's catalysing a broad supply chain involving critical power, cooling, and compute components, positioning Indian companies as essential participants in this significant AI-driven infrastructure evolution.
In this editorial we will look at three smallcap data center stocks.
Its products serve a diverse range of industries, including aerospace, defence, semiconductors, energy, chemicals, and industrial manufacturing.
This has accelerated the adoption of liquid-cooling infrastructure, creating a significant new opportunity for Aeroflex.
During FY26, the company successfully commercialized its SFN (Secondary Fluid Network) skid assemblies and advanced flow-control solutions designed for high-performance liquid-cooling applications used in AI-driven data centers.
Aeroflex supplies these skid assemblies to a global liquid-cooling solutions provider, which then integrates them into complete cooling systems for hyperscale and enterprise data centers.
The data-center business currently contributes only about 5% of Aeroflex's revenue; however, the company sees it as a major growth driver going forward. The company has expanded capacity from 2,000 skids to 6,000 skids annually, with plans to scale further to 15,000 skids by Q2 FY27.
The liquid-cooling market is growing as AI servers generate higher heat than traditional servers. The management estimates that liquid-cooling systems account for around 10-11% of total data-center project costs and expects the market to grow at roughly 35% CAGR over the coming year.
In the past one month, Aeroflex Industries' share price has rallied 3.1%. In the last six months, it's up 136.9%. Additionally, in the last one year, its share price has rallied 136.2%.
The stock touched its 52-week high of Rs 458 on 8 May 2026 and a 52-week low of Rs 157.8 on 23 January 2026.
#2 Dynacons Systems & Solutions
Next on the list is Dynacons Systems & Solutions.
Dynacons Systems & Solutions is one of India's leading IT infrastructure system integrators and managed services providers, with a market capitalisation of about Rs 16,620 m.
The company helps enterprises design, deploy, and manage mission-critical technology environments and offers end-to-end solutions across data center and cloud infrastructure, networking, cybersecurity, digital workplace solutions, and managed services.
Data Center Theme
Dynacons participates in the data-center theme as a technology infrastructure integrator.
The company designs, deploys, and manages complete data-center and cloud environments for enterprises, including compute infrastructure, storage, networking, virtualization, security, and private cloud solutions.
The data center and cloud infrastructure segment has become the company's primary growth engine, with its revenue contribution growing from 14% in FY21 to 37% for the year ending March 2026. The order book, as of May 2026, stands at Rs 29,640 m.
How Dynacons Systems & Solutions Share Price has Performed Recently
In the past one month, Dynacons Systems & Solutions' share price has fallen by 8.5%.
In the last six months, it is up 51.2%. In the last one year, its share price has rallied 19.5%.
The stock touched its 52-week high of Rs 1,925.6 on 25 May 2026 and a 52-week low of Rs 781.5 on 30 March 2026.
#3 Aurionpro Solutions
Next on the list is Aurionpro Solutions.
Aurionpro Solutions has transformed itself from a traditional IT services company into a global software, platform, and technology solutions provider focused on Banking, Transit, Data Center Services, and AI-native software.
The company follows an IP-led business model, investing in proprietary products and platforms rather than conventional manpower-based IT services.
Data Center Theme
Data center services has emerged as one of the most important strategic opportunities for the company. Unlike traditional IT companies that merely provide software or implementation services, Aurionpro participates directly in the physical AI infrastructure ecosystem.
The company designs, deploys, and manages high-performance data-center infrastructure solutions for hyperscalers, cloud providers, and enterprise customers.
In FY26, the company secured one of India's largest AI-focused data-center mandates from a leading hyperscaler, which management described as a major inflection point for the business. It also highlighted that it's increasingly becoming a 'partner of choice' for hyperscalers in the AI era.
These projects involve infrastructure deployment, and upfront investments, placing Aurionpro at the center of India's expanding AI infrastructure ecosystem.
How Aurionpro Solutions Share Price has Performed Recently
In the past one month, Aurionpro Solutions' share price has fallen by 12.8%. In the last six months, it is down 33.8%. Additionally, in the last year, its share price has rallied 46.5%.
The stock touched its 52-week high of Rs 1,663.1 on 16 July 2026 and a 52-week low of Rs 720.1 on 30 March 2026.
Conclusion
India's data center industry is entering a phase of rapid growth. According to an IBEF report dated 1 June 2026, the country's total data center capacity is expected to cross 3 GW by the end of 2028, driven by the rising adoption of AI, increasing cloud computing requirements, and growing demand from hyperscale operators.
India has emerged as one of the most attractive data center markets in the Asia-Pacific region, supported by favourable government policies, expanding digital infrastructure, and stricter data localisation requirements.
The investment opportunity is equally compelling. Industry estimates suggest that India's data center market could attract investments of up to Rs 2,135.5 bn (US$ 22 bn) by 2030, fuelled by demand for cloud services, AI workloads, and edge computing facilities.
However, it's important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance.
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