India’s data centre sector at a glance
India’s installed data centre capacity reached around 1,575 MV by August 2026. It was about 375 MW in 2020. That’s more than 4 times the earlier capacity in roughly 6 years. Industry estimates put capacity at around 4,000 MW by 2030.
What’s pushing this growth is the fact that more and more businesses are moving their data and applications to cloud platforms. Also, rising digital payments need systems that can handle large amounts of information.
This expansion creates work for companies that supply equipment. A new data centre needs electrical panels, transformers, backup generators, and cooling systems. Once it starts operating, it also needs maintenance and, over time, equipment upgrades.
The government is also supporting the digital infrastructure growth. Under the IndiaAI Mission 2024, companies are given access to computing capacity for AI development. Further, the Union Budget of 2026 also introduced tax incentives for foreign cloud service providers that use data centres in India for global operations.
However, the government doesn’t provide a general subsidy for setting up data centres. Most projects are developed by private companies.
Overview of the top 5 data centre stocks
Here are the companies that are linked to the data centre sector in different ways.
Disclaimer: The stocks listed above are selected based on market capitalisation. The information is provided for educational and informational purposes only and should not be considered investment advice.
Larsen & Toubro
Larsen & Toubro (L&T) is involved in both building and operating data centres. Its digital infrastructure business operates under the Vyoma brand. In August 2026, the company disclosed its plans to host an AI computing facility with 10,000 Nvidia B300 GPUs at its Chennai data centre. The project shows how its business is moving beyond construction into computing infrastructure.
ABB India
ABB India Limited is in the business of making electrical equipment and automation systems. Data centres use these products to manage their power supply and keep operations running. In FY25, the company provided electrical panels and power solutions to Indian data centre customers. However, data centres are only one part of ABB India’s business. The company also serves industries such as manufacturing and infrastructure.
Hitachi Energy India
Hitachi Energy India Limited is known for power transmission and electrical systems. Its business plays an important role for data centres as they need a reliable electricity supply. In FY26, Hitachi’s revenue from operations reached ₹8,147.70 crore. Its data centre business is part of a wider operation that also serves industrial utilities and other infrastructure projects.
Cummins India
Cummins India Limited is involved in the business of making engines and power generation equipment, including backup generators. Data centres need these generators to keep running when the main power supply fails. Even a short power cut can disrupt their operations. Cummins also supplies equipment to other sectors, including construction and manufacturing industries.
Voltas
Voltas is known for air conditioners, but it also handles larger cooling and engineering projects. Data centres need specialised cooling because their servers produce heat throughout the day. In March 2026, Voltas outlined its plans to serve this market with products such as centrifugal chillers and its mechanical, electrical and plumbing project services.
How to pick the right data centre stocks?
Before choosing a stock, find out what the company supplies to data centres and whether it is directly or indirectly related to the data centre business. You can consider the following:
- Orders from data centre clients: Check whether the company has won contracts for data centre projects. Announcing the plan is different, but actual orders are what bring in the real business.
- Equipment supplied: Find out whether it makes power systems, generators, cooling equipment, or provides construction services. This helps you understand where its business fits.
- Share of business: Check whether data centres are a major customer segment or just a small part of the company’s operations.
- Project progress: Large projects can take time to complete. Look at whether orders are being delivered and converted into revenue.
- Service and maintenance work: Companies that provide maintenance of equipment after installation may get repeat business. Check whether the company earns from these services.
The bottom line
Data centre stocks can give you a way to take part in the growth of India’s digital infrastructure. If a company wins more orders and grows its earnings, its shares may benefit. But a single stock can also fall if projects are delayed or other parts of its business perform poorly.
For a more balanced approach, you can explore mutual funds on the Millions app. Mutual funds allow you to invest across several companies at once. You can check the fund’s holdings to see whether it actually invests in businesses linked to data centres. An SIP can also help you invest regularly, without having to time the market. As you learn more, you can spread your investments across different sectors and asset classes instead of relying on one scheme.
