Stocks to Watch Amid India's AI-Driven Data-Centre Boom

If data is the new oil, data centres are the refineries converting it into AI-ready fuel. And India is fast emerging as the next global hub.

The country generates nearly 20% of the world's data but hosts only 3% of global data center capacity. This creates a structural supply gap that global technology companies are now rushing to address.

According to Colliers India, India's installed data-center capacity has expanded from 0.3 gigawatt (GW) in 2018 to 1.26 GW by April 2025. This was driven by a nearly 30-fold rise in data traffic since FY17, driven by smartphones, OTT platforms, digital payments, and e-commerce.

So, it's still early days. Jefferies estimates capacity could quintuple to 8 GW over the next five years, implying US$ 30 billion (bn) i.e., Rs 2.7 trillion (tn) of investment.

With hyperscalers such as Google (US$ 15 bn), AWS (US$ 8.3 bn), OpenAI, Reliance (US$ 11 bn), and TCS (US$ 6.5 bn) committing large sums to AI-focused infrastructure, India's data center expansion has moved firmly into the execution phase.

The buildout is now shaping up as a multi-year capex cycle. This is expected to open a large market for real estate (US$ 6 bn), electrical and power systems (US$ 10 bn), racks (US$ 7 bn), cooling systems (US$ 4 bn), and network infrastructure (US$ 1 bn).

#1 E2E Networks

First on the list is E2E Networks.

E2E Networks is a leading Indian hyperscaler and Infrastructure-as-a-Service (IaaS) provider, specialising in advanced Cloud GPU infrastructure.

A key differentiator for E2E is its commitment to Sovereign AI.

The company's compute instances are distributed across four data centres located in Noida, Chennai, and Mumbai, ensuring data locality for India-centric workloads.

Within these data centres, E2E uses InfiniBand NDR with speeds up to 3.2 tbps.

This low-latency technology allows them to scale GPU clusters across multiple physical machines to handle massive AI training workloads.

E2E currently has access to about 10 megawatts (MW) of power capacity. This includes 1 MW of older capacity and 9 MW of newer capacity added in the last two years.

This 10 MW infrastructure can accommodate 8,000 to 10,000 cloud GPUs. As of late 2025, the company has deployed nearly 3,900 cloud GPUs, leaving a big gap to fill.

Total utilisation during Q2 FY26 was 35-40%. The goal is to achieve 80-90% utilisation by March 2026, driven by large contracts such as the IndiaAI mission.

A core component of E2E's strategy is its partnership with Larsen & Toubro (L&T).

E2E recently expanded its capacity by setting up specialised GPU clusters at L&T's state-of-the-art data center facility in Chennai, which went live in August 2025.

The company is currently in advanced stages of procuring nearly 2,048 NVIDIA Blackwell B200 GPUs to stay ahead of the rapid technology cycles in the AI market.

From a financial perspective, E2E revenue rose by 21.3% year-on-year (YoY) to Rs 438 million (m) in Q2 FY26. However, the operating profit margin decreased by 25 basis points (bps) to 41%.

As a result, the company reported a loss of Rs 130 m, against a net profit of Rs 120 m. High depreciation costs of Rs 428 m related to new GPU infrastructure also contributed to the loss.

The financials are expected to improve due to two contracts worth Rs 2.7 bn awarded to the company under the IndiaAI Mission. These orders can contribute Rs 200 m to the monthly run rate once fully implemented. The management aims to reach Rs 350 m per month by March 2026.

Check out E2E's 5-year financial factsheet and quarterly results to know more.

#2 Netweb Technologies

Second on the list is Netweb Technologies.

Netweb Technologies operates as a leading OEM in the high-end computing solutions space, providing the essential infrastructure required for modern data centres.

Netweb designs and manufactures the servers, storage, and software stacks that power data centres.

Data center servers feature cyber-secure architecture, consume less rack space, and offer increased built-in storage. They are designed to reduce the complexity of managing heavy, critical workloads.

It also provides a unified data storage platform for object, block, and file architectures, which are essential for the large data repositories found in data centres.

Its Tyrone Skylus brand offers hyper-converged infrastructure that combines compute, storage, and networking, enabling organisations to quickly set up on-prem cloud infrastructure.

The management has identified the explosion of on-premises cloud infrastructure across large enterprises and the rising demand for inbound data centres in India as key growth catalysts.

They view global hyperscalers (such as Google) setting up data centres in India as a big opportunity to offer high-end computing solutions.

From a financial perspective, operating income rose by 21% YoY to Rs 3 bn. Profit after Tax (PAT) surged by 20% to Rs 314 m. The AI segment is the primary growth engine, expanding by 160% to contribute 25.4% of revenue in the first half of FY26.

Netweb aims to grow at 35-40% CAGR organically over the next 3 years. This strong growth is expected to be driven by the order book of Rs 26.8 bn, providing revenue visibility of over two years.

The management aims to secure orders from a robust pipeline of about Rs 40 bn. They expect to complete about one-third of large orders in FY26, with the remainder in FY27.

Netweb is also expanding into Europe and the Middle East and with plans to establish service networks in four countries to meet international demand.

Check out Netweb's 5-year financial factsheet and quarterly results to know more.

#3 Cummins India

Third on the list is Cummins India.

Cummins is a major manufacturer of engines and power generation solutions. It serves a diverse range of industries, including data centres, construction, railways, and marine.

Power generation is its largest revenue driver, with a focus on providing backup and mission-critical power. Cummins manufactures engines and gensets across low, medium, and high-horsepower ranges.

Data centers utilise extremely heavy engines and gensets. Cummins manufactures these engines close to the customer because of their high weight, which makes them logistically difficult and expensive to ship.

Revenue rose 28% YoY to Rs 31.7 bn in Q2 FY26, driven by a 49% growth in the power generation sales of Rs 13.4 bn. PAT grew by 38.5% to Rs 6.2 bn.

Notably, data centres accounted for 40% of power generation sales during the quarter. Excluding data centers, the power generation business grew by 20% only.

This trend aligns with the parent company's order intake, driven primarily by data center demand in the US and Europe.

The company says this is a huge future opportunity because this country has the potential to bridge the gap with rapidly growing markets like the US, China, and Europe.

Cummins India categorises its data center clients into two main types, each with distinct demand patterns. These include co-location players and hyperscalers.

Within co-location, Cummins builds infrastructure to sell to other global operators. Their demand is generally stable and well-spread throughout the year.

The hyperscaler group includes global technology giants such as Microsoft, Amazon, and Google. But business from hyperscalers is lumpy and project-based, as execution depends on complex site clearances and specific commissioning windows.

The recent growth was due to several large hyperscaler projects fructifying simultaneously. Cummins is also focusing on reducing lead times and expanding capacity to strengthen competitive positioning.

Cummins is also increasingly looking toward Battery Energy Storage Solutions.

Check out Cummins' 5-year financial factsheet and quarterly results to know more.

#4 KRN Heat Exchanger

Fourth on the list is the KRN Heat Exchanger (KRN).

KRN specialises in manufacturing fin-and-tube heat exchangers for the heating, ventilation, and air conditioning (HVAC) and refrigeration industries.

The company uses non-ferrous metals, like copper and aluminium, to produce various products.

These products are used in critical applications, including air conditioning, refrigeration, and process cooling. KRN manufactures large heat exchangers that meet the cooling needs of data centres.

The cooling requirements for data centres represent a primary high-growth segment for KRN, fueled by the rapid expansion of digital infrastructure and the rise of AI.

As a result, KRN expects commercial HVAC growth to increase at least 20% over the next decade.

The management aims to capitalise on major opportunities, such as Google's announced Rs 500 bn investment in data centres in Visakhapatnam. The estimate is that this project alone could generate demand for Rs 15 bn in heat exchangers.

To meet these demands, its new plant for manufacturing large cooling coils started operations in May 2025. The total annual capacity has increased sixfold, from 1 m units to 6 m units.

The existing facility is operating at almost full utilisation. The new capacity is expected to achieve 20% utilisation in FY26 and 50% the next financial year.

KRN also aims to achieve a 50% export revenue share in the next three years for the finned and tube-type heat exchanger segment.

From a financial perspective, revenue rose 67% YoY to Rs 1.5 bn in Q2 FY26, with operating margins at 20%. However, net profit surged 50% to Rs 180 m.

Check out KRN's 5-year 5-year financial factsheet and quarterly results to know more.

#5 Orient Technologies

Last on the list is Orient Technologies.

Orient is a diversified IT solutions provider company. Its core offerings are divided into two categories.

IT Infrastructure solutions include data centers, end-user computing, and cybersecurity.

IT infrastructure and application services include cloud and DevOps, digital transformation, managed infrastructure services, and Device-as-a-Service (DaaS).

Orient aims to transition from DaaS to a Total Outsourcing Service (ToS), in which they manage a client's entire IT ecosystem, covering both infrastructure and application modernisation.

The company doesn't build the physical structures of data centers. Rather, it provides the complete IT infrastructure they need to function. This includes providing and setting up the network, backup, and storage devices for the data center.

In addition, it provides 24/7 monitoring and comprehensive IT management to ensure high availability of the data center ecosystem.

The company also implements high-availability technology infrastructure, such as Dell's Azure Stack, for complex client requirements.

New India Assurance recently awarded Orient a multi-year order worth Rs 308 m to provide network, backup, and storage services for the insurer's data centers.

A global pharma company awarded a Rs 37.5 m contract to set tech infrastructure via Dell Azure Stack.

From a financial perspective, revenue increased by 22.3% YoY to Rs 2.7 bn. BFSI accounted for 14.90% of revenue, followed by government/PSU (19.65%), telecommunications (13.11%), and ITES (4.9%). Both segments contribute almost equally to the revenue mix, at about 50% each.

PAT declined 6.7% to Rs 15 m, with EBITDA margin at 8%. Margins are expected to gradually improve in Q4 as initial setup costs for new initiatives taper off and higher-margin services scale up.

Check out Orient's 5-year financial factsheet and quarterly results to know more.

Conclusion

India's AI data-center buildout is no longer a distant theme-it's unfolding through committed capital, rising capacity, and visible order flows.

As hyperscalers scale infrastructure, the opportunity extends well beyond operators to enablers across compute, power, cooling, and IT systems.

The five firms discussed sit at different points of this value chain, each exposed to the same multi-year capex cycle. Execution, utilisation ramp-up, and balance-sheet discipline will determine which ones convert this structural tailwind into sustained earnings growth.

Instead of relying on hype, investors need to carefully analyse the company's fundamentals, including financial performance, corporate governance practices, and growth strategies.

Happy investing.

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