Best data center in India
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Today India is generating data in terabytes across organisations. Whether banking, insurance, auto, defense, or agriculture, people have been using artificial intelligence to augment production. This creates a huge amount of data to be stored. Further, with the increasing use of 5G networks, YouTube, and social networking, the data generated in India is huge.
The government of India mandated all the organizations to store the data generated from all the sources within India. Hence data center business in India is expected to thrive. The government of India also framed policies to support this industry with its policies such as the Essential Services Maintenance Act (ESMA), creating Data Centre Facilitation Units (DCFU), creating Data Centre Economic Zones, and creating a special category code for data centers under the National Building Code of India are all part of this plan.
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Data Center in India
The Indian data center activities escalated after the Reserve Bank of India directives to localize payment-related data.
The India Data Center is expected to reach 17 GW by FY2030 from its current size of 1 GW in 2024. This is a huge jump of 17 times within the next 6 years. Indian companies are expanding domestically and also eyeing export or open data center abroad. For example, Airtel launched its Nxtra data center business in Africa.
The data center market size was estimated at USD 4.37 billion in 2023 and is expected to reach USD 7.66 billion by 2030 at a CAGR of 7.18%. This growth is mainly driven by increasing internet penetration, growth in digital data traffic, rising public cloud services, and expanding Internet of Things (IoT).
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Data Center Companies in India
Many global and domestic companies are making inroads into this emerging industry in India. Global giants such as NTT, AWS, and Colt DCS, are aggressively building their data center by partnering with domestic players. Indian conglomerates like Reliance and Adani Groups are also aggressively looking to expand their data center business in India. Over the last 36-48 months, the data center industry in India has attracted investments exceeding USD 27 billion.
Chennai is a data centre hub in India due to its strategic coastal location that offers submarine cable connectivity. The city has an installed capacity of 87 MW, with 156 MW under construction and 104 MW planned capacity.
There are huge opportunities for the data center market in India. Let us find out which are the companies present in India. Let us analyze the investment opportunities for investors in India to participate in this industry while investing in data center stocks in India.
Data Center Stocks in India
There is no pure player in the data center in India. Data center companies in India are diversified player. Below are a few data center India stocks to be watch on.
10 Best Data Center Stocks in India
I prefer below 10 best data center stocks in India to consider investing in the below order if you want to play only because of data center. For diversified companies along with data center player, Reliance Industries may be the top choice for me for long term investment.
| Company Name | Market Cap | Market Cap (Cr) |
|---|---|---|
| Bharti Airtel Ltd | Large | 8,91,999 |
| HCL Technologies Ltd | Large | 4,25,991 |
| Anant Raj Ltd | Small | 16,483 |
| Amber Enterprises India Ltd | Small | 15,503 |
| Technoe | Small | 16,182 |
| Netweb Technologies | Small | 13,917 |
| Tata Communications Ltd | Mid | 52,751 |
| Cummins India Ltd | Mid | 1,07,256 |
| KEC International Ltd | Small | 22,813 |
| Reliance Industries Ltd | Large | 21,32,343 |
Other listed companies you may consider for further analysis are Adani (Adaniconnex) listed in India, Yotta Infrastructure is going to be listed in Nasdaq. Other big global data center and hyperscale players are Meta, Google, Microsoft, Oracle, IBM, and Alibaba.
My Top Picks of Data Center India Stocks
Nxtra By Bharti Airtel (Airtel)
Nxtra is a subsidiary of Bharti Airtel Limited. The company is one of the largest providers of data center in India. In addition, Nxtra has been associated with both the data center and telecom industry for more than 2 decades, which gives an edge to the company’s growth potential. Backed by one of the world’s largest investment firms Carlyle Group, the Nxtra data center is spread over 120 locations.
Nxtra operates both colocation data centers and hyperscale parks in India and abroad. In India, the company has a 21MW hyperscale part in Pune, while other 6 hyperscale data centers are coming up in major metros in India such as Mumbai (58MW), Pune (110 MW), Kolkata (16MW), Hyderabad (40MW), Noida (40MW), and Bengaluru (40MW).
In addition to this, Nxtra also operates 8 core data centers across states in India such as Chennai-II (24MW), Mumbai-I (8MW), Pune-I (3MW), Bengaluru-I (5.5MW), Noida-I (4MW), Noida-II (6MW), Manesar-I (8.5 MW), Chennai-I (3.5MW), Chennai-III (1.5MW), Bhubaneswar-I (1.8MW), Mumbai-II (4MW). The company also operates a 50MW Edge Datacenter.
This is one of the core data center companies in India with strong parents like Bharti Airtel. With the growth of the telecom industry and data center business, Bharti Airtel will benefit the most. Hence, Bharti Airtel is good to invest at this stage to participate in the data center growth story in India.
HCL Technologies (HCL)
HCL Technologies is not a direct data center companies in India rather the company offers Data Center Consulting Services to meet the different requirements of the data center companies. The services include data center design services, consultation to the modernization of existing data center facilities, and data center hosting services. The data center management services include onsite hand and feet support, network support, reporting, etc.
The optional data center management services consist of onsite hand and feet support, network support, reporting, tools for rack floor planning, data center infrastructure management services, etc.
Currently, HCL Technologies has a network of over 250 data center sites across the world. The company.
In addition, HCL Technologies is one of the IT majors in India with a presence across the globe. The company is into IT products as well as software. HCL Technologies presents itself in AI and Generative AI, Cloud, Engineering, and Software segments of this industry. With the US economy recovering from mild recession and the rate cut cycle imminent, HCL Technologies will do better compared to its peers. Stay invested in this company.
Anant Raj Ltd
Anant Raj Limited (ARL) is engaged in construction and development business focused in three major states in India such as Haryana, Rajasthan, Andhra Pradesh, and Delhi NCR. The company started its Data Center market operations in 1969.
Anant Raj Ltd is planning for 300 MW of data center by investing Rs 10,000 crore in four to five years. Anant Raj Cloud, a subsidiary of Anant Raj Ltd, manages the data center business in Manesar, Rai, and Panchkula in Haryana. The company currently operates 3MW and will add 3MW more data centers this year. Anant Raj Ltd is expanding its Manesar facility by 21MW with a projected investment of Rs 500 crore.
The company is one of the best data center companies in India along with its core construction business. Keep an eye on this company for investment.
Amber Enterprises India Ltd (Amber)
Amber Enterprises India is the original equipment manufacturer (OEM) and original design manufacturer (ODM) for consumer durable products such as air conditioners, metal components for microwave assembly, washing machine tub assemblies, case liners for refrigerators, motors for HVAC products, and printed circuit board. The company offers its products to some of the big consumer durable players such as Amazon, Carrier Media, Daikin, Hitachi, Panasonic, LG, Whirlpool, and Samsung.
Amber Enterprises is well-known for its air conditioner that serves industries such as defense, commercial, automotive, and railway. Amber Enterprises is one of the major air conditioner manufacturers for Telecom and data centers. It Precision AC, climate control solutions for Data Centres. With the growth in data center business in India, the demand for its climate control solutions will go up.
Amber Enterprises is itself a strong company in this segment with growing revenue and PAT over the years. This is one of my favorite data center stocks in India to keep an eye on.
Techno Electric (Technoe)
Techno Electric & Engineering Company Ltd. (TEECL) is one of the largest providers of power infrastructure companies in India. The company foray into data center business in the year 2021. The company is planning to invest USD 1 billion by FY 2030 to establish data centers in India.
TechnoDC, the subsidiary of Techno Electric, is operating a data center in Chennai. With 20,000 square meters of built-up area, the Chennai data center provides 23.4MW IT capacity. This data center is fully run by renewable energy.
The company is also planning two more data centers in Mumbai, and Kolkata. Mumbai data center will offer up to 3 MW capacity.
The Kolkata data center will offer up to 24 MW capacity and will be developed on 4-5 Acre land at Bengal Silicon Valley at Kolkata with an investment of USD 164.1 mn.
This is one of my favorite data center stocks in India to invest in from a long-term perspective. The company has been reporting strong revenue over the years.
These five data center companies in India are my best picks. Please share your view on other companies. Please share your view in the comment box or getintouch@mind2markets.com. For further details about these companies or their activities, please reach us directly.
Major Data Center Companies in India
| Company |
| AdaniConneX |
| Nxtra by Airtel |
| ST Telemedia Global Data Centres |
| NTT Global Data Centers |
| Web Werks |
| Sify Technologies |
| Yotta Infrastructure |
| CtrlS Datacenters |
List of data centers in India
| List of data centers in India (These are the pure data center players in India) |
|---|
| Equinix |
| Yotta Data centers |
| Digital Realty |
| Amazon AWS |
| MOD Mission Critical |
| Zenlayer |
| IBM Cloud |
| EdgeConnex |
| Microsoft Azure |
| Oracle |
| Iron Mountain Data Centers |
| STTelemedia Global Data Center |
| Psychz Networks |
| HostDime |
| Nxtra by Airtel |
| MetaEdge |
| SIfy Technologies Limited |
| CtrlS Datacenters LTD |
| Web Werks India Pvt Ltd |
| Amaara Networks |
| Netforchoice Data Center |
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