5 Smallcap Datacenter Stocks to Add to Your 2026 Watchlist

As artificial intelligence, fintech, e-commerce and streaming services demand ever more computing power, the need for robust, localised data infrastructure has never been greater.

Data centres, once a niche business, are fast becoming the backbone of India's digital ambitions.

India's installed data-centre capacity, estimated at just over 1,250 megawatts, is projected to quadruple by 2030, attracting more than US$ 25 billion (bn) in new investments.

What's driving this surge is a mix of government policy, rising cloud adoption, and the artificial intelligence (AI) boom. The rollout of the IndiaAI Mission, combined with the rapid expansion of 5G and digital public infrastructure, is creating unprecedented demand for compute power.

For investors, this shift opens a new front in the search for durable growth.

Data centres are capital-intensive. But the ecosystem around them including the builders, enablers, and service providers offers exposure to a long, multi-year structural theme.

In a market crowded with expensive tech stocks, these five infrastructure-linked stocks present a different way to participate in India's digital transformation story.

#1 Orient Technologies

First on our list is Orient Technologies.

Orient Technologies helps companies scale their IT infrastructure and manage digital transformation.

The company operates across two verticals including IT infrastructure solutions and application & infrastructure services. It serves clients in BFSI (Banking, Financial Services and Insurance), telecom, government, and healthcare.

Over the years, Orient has expanded into higher-margin areas such as cloud, cybersecurity, and data centre solutions.

The data centre business has become a core growth pillar under its infrastructure vertical, contributing nearly one-fourth of total revenue in FY25, up from 16% in FY21.

The company partners with leading OEMs including Dell, HPE, Nutanix, and Cisco to design, deploy and manage enterprise data centres, integrating managed security, and cloud optimisation.

In FY25, it executed a Rs 123 million (m) enterprise data centre project for clients in the financial services and cloud sectors.

Management indicated that margins in the data centre segment range between 8-10%. It's plans are underway to scale this vertical through bundled services and recurring maintenance contracts.

Data centre and cloud services are expected to remain key revenue drivers in FY26, backed by a Rs 4.14 bn order book.

Another focus area is Device-as-a-Service (DaaS), which allows customers to move from capital-intensive purchases to subscription-based IT models.

Q1FY26 sales grew 43% year-on-year (YoY), due to cloud, DaaS, and digital transformation projects. EBITDA margins was 8% due to early investments in a new Security Operations Centre, which is expected to support margin recovery in the coming quarters.

Presently, the stock trades at around 38 times earnings, a premium to its 5-year median of 27.

To know more about the company, check out its financial factsheet and latest quarterly results.

#2 Aurionpro Solutions

Next on the list is Aurionpro Solutions.

Aurionpro Solutions offers a blend of software products, platforms and consulting services across banking, fintech, and enterprise technology.

The company operates through two business divisions - Banking & Fintech and the Technology Innovation Group (TIG), which houses its transit, smart mobility, and data centre operations.

The data centre business has emerged as one of the fastest-growing verticals within the TIG segment. Starting almost from scratch four years ago, it now contributes close to one-third of that division's revenue.

Aurionpro is among the few Indian firms with an in-house team capable of designing and managing large-scale, high-value data centre projects. The company focusses on high-complexity assignments with healthy margins rather than chasing volume growth.

The data centre business is expected to expand, aided by steady execution and a strong order book. The company is integrating proprietary software and automation tools into its data centre business, to enhance margins and scalability.

In Q1 FY26, Aurionpro reported revenue growth of 29% YoY, supported by its banking and technology innovation divisions.

EBITDA margin stood at 20.2%, reflecting disciplined cost control despite higher R&D spends. Looking ahead, management aims to sustain 25-30% annual revenue growth and maintain margins above 20%, supported by its expanding data centre and IP-led platform portfolio.

At current levels, the stock trades at a PE ratio of 31 in line with its 5-year median PE of 30.

To know more about the company, check out its financial factsheet and latest quarterly results.

#3 E2E Networks

Third on our list is E2E Networks.

E2E Networks provides cloud infrastructure built for artificial intelligence and machine learning. The company operates an AI-first public cloud platform, empanelled with MeitY and serves government organisations, enterprises and startups.

It has built a strong presence in India's national cloud infrastructure through partnerships with Nvidia and Larsen & Toubro.

Its data centres in Noida and Chennai host close to 3,900 high-performance processors. This allows E2E to offer a full suite of cloud solutions covering computing, storage, and model development. These are areas where demand is rising rapidly.

In Q1 FY26, revenue declined 12.6% YoY to Rs 360 m as new capacity came online later than expected. EBITDA margin stood at 29.1%, reflecting early costs from its South India expansion. The Noida facility is already operational, while Chennai is expected to be fully functional soon.

About 3,000 processors are already in use and generating steady revenue, with the balance to be deployed in the coming months. The company aims to raise utilisation levels and attract more enterprise customers under the IndiaAI Mission.

The capital expenditure for the new facility is being funded from earlier preferential allotments. Management expects monthly recurring revenue to rise to Rs 320-380 m by the end of FY26 as both centres reach full capacity.

At current levels, the stock trades at a PE ratio of 218, a premium to its 5-year median PE of 75.

To know more about the company, check out its financial factsheet and latest quarterly results.

#4 Bajel Projects

Fourth on our list is Bajel Projects.

Bajel Projects, a Bajaj Group company, provides end-to-end engineering, procurement and construction (EPC) solutions for the power infrastructure industry.

The company has more than two decades of experience. It executes transmission lines, substations, underground cabling and distribution networks across India and abroad.

Bajel has also begun diversifying into data centres and battery energy storage, leveraging its expertise in high-voltage substations.

In FY25, it entered the data centre space with a substation project in Navi Mumbai. This is its first step toward building capabilities in large-scale electrical infrastructure for hyperscale data facilities.

During FY25, Bajel reported a 122% YoY growth in revenue and a 3.4% EBITDA margin, supported by stronger project execution and cost control. The order book stood at about Rs 36 bn at year-end, with new orders worth over Rs 20 bn secured during the year.

Looking ahead, management aims to scale its core EPC (Engineering, Procurement and Construction) business while expanding in high-growth segments like data centres, battery storage, and industrial infrastructure under its six-year "RAASTA 2030" roadmap.

The capex will focus on modernising the Ranjangaon manufacturing facility and digitalising project execution to improve margins.

Presently, the stock trades at a PE of 176, close to its 5-year median PE of 160.

To know more about the company, check out its financial factsheet and latest quarterly results.

Bottom of Form

#5 Netweb Technologies India

Last on our list is Netweb Technologies India.

Netweb designs and builds high-end computing systems that power cloud and AI infrastructure.

The company offers solutions across high-performance computing, private cloud, AI systems and enterprise data-centre servers.

It caters to clients in government, defence, research, and large enterprises.

Data centre servers have become an important growth area within its product mix. Netweb's "Tyrone Camarero" range includes over 200 models designed for speed, energy efficiency, and reliability.

This business accounted for about 5% of total revenue in FY25 and continues to benefit from rising demand for AI and cloud infrastructure in India.

In Q1 FY26, Netweb's revenue doubled YoY to Rs 3 bn, aided by strong performance in AI systems and private-cloud solutions.

EBITDA margin improved to 14.9%, helped by a better order mix and operating leverage from larger AI contracts. The company remains debt-free, with a healthy cash balance of Rs 470 m. AI-related projects now make up nearly one-third of its total revenue.

Looking ahead, Netweb aims to deepen its presence in AI-led computing and data-centre integration under the "Make AI in India" initiative. The management expects 35-40% annual revenue growth with margins near 14%, supported by a Rs 7 bn order book and a strong Rs 40 bn project pipeline.

At current levels, the stock trades at a PE of 191, a premium to its 5-year median PE of 115.

To know more about the company, check out its financial factsheet and latest quarterly results.

Conclusion

The data centre opportunity in India is real, but not every company will benefit equally. The key is to identify those with strong balance sheets, disciplined execution and a clear competitive edge. Growth on its own does not make a good investment; what matters is consistency and resilience.

In a market filled with optimism, it's important to separate structural stories from short-term trends. The companies that combine technological depth with financial discipline will be the ones that build lasting value.

For investors, the message is simple. Focus on fundamentals, be patient, and let business quality, corporate governance, and stock valuations guide investment decisions.

The data centre story will play out over many years. Investors who focus on quality stocks will be the ones who create wealth.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...