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  • Jun 11, 2026 - 3 Small Cap Data Center Stocks in India to Add to Your Watchlist

3 Small Cap Data Center Stocks in India to Add to Your Watchlist

Jun 11, 2026

3 Small Cap Data Center Stocks in India to Add to Your WatchlistImage source: Andrey Suslov/www.istockphoto.com

India's data center ecosystem is currently undergoing a structural transformation, propelled by a dual growth trajectory that fuses rising demand from an expanding digital economy with the urgent need to scale infrastructure for AI training and inference workloads.

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.

#1 Aeroflex Industries

Aeroflex Industries is an engineering company with a market capitalisation of about Rs 540 bn, specialising in stainless-steel flexible hoses, assemblies, metal bellows, and fluid-transfer solutions.

Its products serve a diverse range of industries, including aerospace, defence, semiconductors, energy, chemicals, and industrial manufacturing.

Data Center Theme

The company has now entered into the rapidly growing data-center liquid-cooling ecosystem. As AI, cloud computing, and high-performance computing drive a sharp increase in server power density, traditional air-cooling systems are becoming inadequate.

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.

How Aeroflex Industries Share Price has Performed Recently

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.

Aeroflex Industries Share Price - 1 Year

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