India’s AI and data-center ecosystem is entering a major growth phase. Data-center capacity expanded from around 0.5 GW in 2020 to 1.6 GW in 2025, supported by rising data consumption, AI adoption and large investments in digital infrastructure. The opportunity extends beyond data centers themselves to optical connectivity, networking, power infrastructure and advanced cooling systems.
Here are five Indian stocks that could benefit from the country’s expanding AI and data-center infrastructure theme. These are not necessarily direct AI software plays; instead, they provide exposure to the infrastructure required to build and operate the AI economy.
1. Sterlite Technologies
- Provides optical fiber, fiber cables and high-speed connectivity solutions used by telecom operators, hyperscalers and data centers. Its technology supports high-density GPU clusters and 400G–800G networks.
- The company has launched its Neuralis AI data-center connectivity portfolio. The source highlights a large hyperscale data-center order worth around ₹1,100 crore. The company has a significant position in the optical-fiber market outside China and a large patent portfolio.
- FY26 revenue was around ₹4,745 crore, while EBITDA margin improved to 13.2%.
- Rising AI-driven data-center and telecom capital expenditure could support future demand.
- Key risk: Growth depends heavily on successful execution and continued global demand for optical-fiber infrastructure.
2. Black Box
- Provides networking, connectivity, cybersecurity and data-center solutions. Operates across 35 countries and serves more than 120 Fortune 500 clients, according to the source.
- AI data centers and enterprise networking are expected to be important growth drivers. The company is using both organic growth and acquisitions to expand its international presence.
- Its acquisition of Brazil-based 2S Inovações Tecnologia is aimed at strengthening its Latin American capabilities. Management is targeting ₹18,000 crore in revenue by FY30.
- EBITDA increased from ₹269 crore in FY23 to around ₹570 crore in FY26, while margins improved from 4.3% to 9%. The source highlights an order backlog of approximately $800 million.
- Key risk: The investment case depends on successful acquisition integration, backlog conversion and sustained AI-infrastructure demand.
3. Anant Raj
- The real-estate company is expanding into data centers and digital infrastructure. Its land, power and capital resources could provide an important foundation for data-center expansion. Data-center, infrastructure and allied services generated ₹176 crore of revenue in FY26, according to the source. Operational IT load was around 28 MW, with management targeting 117 MW by FY28 and 357 MW by FY32. Higher IT load could translate into greater server-hosting capacity and potentially more recurring data-center revenue.
- The company is also expanding its cloud-services presence. Government cloud opportunities and partnerships could strengthen its digital-infrastructure ecosystem.
- Successful expansion from 28 MW toward the targeted capacity could significantly increase the contribution of data centers. Data-center expansion is capital intensive, and delays in capacity expansion or customer onboarding could affect growth expectations.
4. Aeroflex Industries
- Increasingly powerful AI servers generate enormous amounts of heat, creating demand for advanced cooling systems. Aeroflex manufactures liquid-cooling skids and assemblies designed to remove heat from high-density servers.
- The company is positioning its cooling products for AI-focused data centers. Production capacity for skid assemblies has increased from around 2,000 to 6,000 units, with management targeting 15,000 units by Q2 FY27.
- Management expects the skid business to contribute around 20–22% of FY27 revenue. The company has indicated an overall growth target of around 35%. FY26 revenue was around ₹443 crore, with EBITDA of ₹100 crore and an EBITDA margin of 22.6%.
- The source describes the company as virtually debt-free, with around ₹70 crore of cash. liquid-cooling assembly business currently has significant dependence on one strategic customer, making customer concentration an important risk.
5. Techno Electric & Engineering
- Power infrastructure is essential for data centers because AI facilities require enormous and reliable electricity supplies. The company is using its established power-infrastructure capabilities while developing a data-center business.
- Management has committed around ₹1,000 crore of capex for the next phase of its data-center business.The source highlights operational facilities in Chennai and Gurgaon, with additional projects planned in Noida and Kolkata.
- Management is targeting ₹40–50 crore of data-center revenue in FY27. The company is targeting around 250 MW of data-center capacity by 2030 and ₹400–500 crore of revenue from the business.
- FY26 revenue was around ₹3,250 crore, with PAT of ₹449 crore and an order book of approximately ₹9,600 crore. If the data-center business scales successfully, it could become a major growth engine and potentially change the company’s valuation profile.
- Execution, leasing progress and customer additions will be critical as new data-center capacity comes online.
