Best data centre stocks in india (2026): a beginner-friendly guide

BEST DATA CENTRE STOCKS IN INDIA (2026): A BEGINNER-FRIENDLY GUIDE

QUICK SUMMARY

• Data centres are critical infrastructure for cloud services, AI, streaming, and digital payments.

• India’s demand is rising due to cloud adoption, 5G rollout, and data localisation rules.

• Pure-play listed data centre companies are limited; exposure is often via subsidiaries or JVs.

• Bharti Airtel (Nxtra), Adani Enterprises, and Tata Communications are key names to track.

• The opportunity is long-term, but risks include high costs, competition, and execution delays.

WHAT IS A DATA CENTRE?

A data centre is a highly secure digital warehouse.

Instead of physical goods, it stores servers that process and store data for apps, websites, and cloud services.

Companies rent space and power in these facilities to run their digital operations reliably, 24/7.

WHY THEY MATTER IN INDIA BY 2026

India is entering a phase where digital activity is growing faster than physical infrastructure. Key drivers include:

• Cloud and AI adoption by global and Indian companies

• 5G rollout leading to higher data usage

• Data localisation rules requiring certain data to stay within India

• Digital India initiatives are pushing services like banking, healthcare, and education online

In simple terms, more digital activity means more demand for data centres.

BEST INDIA-LISTED DATA CENTRE STOCKS TO KNOW

1. BHARTI AIRTEL (NXTRA)

POSITIONING: Bharti Airtel operates Nxtra, India’s largest data centre network, focused on enterprise and hyperscaler clients, with an emphasis on reliability and green power.

GROWTH DRIVERS:

• Capacity expansion plans, including a significant scale-up from current levels

• Use of renewable energy to improve efficiency

• Strong linkage with Airtel’s telecom and enterprise network ecosystem

FINANCIAL SNAPSHOT: Using Airtel’s consolidated numbers, as Nxtra is a subsidiary with limited separate disclosure. Over the past three years, revenue has grown at a steady low-double-digit CAGR. Operating Margins have remained broadly stable around the 50% level, while profits have been volatile due to one-time factors.

RETURNS TREND:

1Y Return 3Y Return 5Y Return

26.43%          155.68%  315.08%

(As of Dec 16,2025)

KEY RISKS:

• High capital spending for expansion

• Competition from global data centre players

• Regulatory risks linked to the parent telecom business

2. ADANI ENTERPRISES (ADANICONNEX)

POSITIONING: Adani Enterprises is building hyperscale data centres through its JV, AdaniConneX, aiming for very large capacity with global partners.

GROWTH DRIVERS:

• Access to large land banks and power infrastructure

• Focus on hyperscaler clients

• Aggressive long-term capacity plans

FINANCIAL SNAPSHOT: Consolidated figures are used as the JV has limited standalone disclosure. Revenue trends have been volatile due to the diversified nature of the parent business. However, profitability and margins have improved over the last few years, indicating better operating efficiency.

RETURNS TREND:

1Y Return 3Y Return 5Y Return

-7.71% -       41.75%         400.52%

(As of Dec 16,2025)

KEY RISKS:

• Group-level debt and funding requirements

• Execution and project delays

• Ongoing regulatory and scrutiny risks

3. TATA COMMUNICATIONS

POSITIONING: Tata Communications is a global digital infrastructure player, with data services and hosting forming a core part of its business.

GROWTH DRIVERS:

• Expansion of its digital and cloud portfolio

• Partnerships related to AI-ready infrastructure

• Stable demand from enterprise customers

FINANCIAL SNAPSHOT: Over the last three years, revenue has grown at a low-to-mid-teens CAGR. Profitability dipped in one year before recovering, while margins have seen some pressure due to rising costs.

RETURNS TREND:

1Y Return 3Y Return 5Y Return

-1.69%         40.05%   73.98%

(As of Dec 16,2025)

KEY RISKS:

• Slower expansion compared to aggressive new entrants

• Margin pressure in a competitive market

• Global competition from international players

4. NETWEB TECHNOLOGIES

POSITIONING: Netweb supplies high-end computing systems and AI servers, directly benefiting from data centre expansion rather than operating centres itself.

GROWTH DRIVERS:

• Rising domestic demand for AI and high-performance computing

• Large order wins from enterprise and data centre clients

• Exposure to hyperscale requirements

FINANCIAL SNAPSHOT: Since listing, the company has shown very high revenue growth, with a strong multi-year CAGR. Profits have grown steadily, though margins have declined slightly as the business scales.

RETURNS TREND:

1Y Return 3Y Return 5Y Return

14.66%         260.13%         260.2%

(As of Dec 16,2025)

KEY RISKS:

• Smaller size leading to higher stock volatility

• Dependence on large orders

• Competitive hardware market

5. TECHNO ELECTRIC & ENGINEERING

POSITIONING: Traditionally an infrastructure EPC player, Techno Electric is entering data centres both as a builder and through its own planned facilities.

GROWTH DRIVERS:

• Strong and expanding order book

• Entry into own data centre projects

• Synergies with power infrastructure expertise

FINANCIAL SNAPSHOT: The company has delivered strong revenue growth over three years with improving EBITDA margins and stable profits, supported by a better project mix.

RETURNS TREND:

1Y Return 3Y Return 5Y Return

-27.02%        249.26%         376.69%

(As of Dec 16,2025)

KEY RISKS:

• Project execution delays

• Data centre business still at an early stage

• Cyclical nature of infrastructure spending

INDIRECT PLAYS

Some large companies benefit indirectly from data centre growth.

Reliance Industries gains through its digital and cloud ecosystem, while L&T benefits from building and supporting infrastructure. These are beneficiaries, not pure data centre operators.

WHAT COULD GO WRONG?

• Data centres require heavy upfront capital

• Power and land costs can increase over time

• Pricing pressure as more players enter the market

• Approval, construction, or commissioning delays

• Rising debt if expansion is too aggressive

• Regulatory changes affecting operations or costs

HOW BEGINNERS CAN APPROACH THE SECTOR

• Avoid concentrating on a single stock

• Mix large-cap stability with selective mid-cap exposure

• Balance sector bets with index funds

• Focus on long-term business trends, not short-term price moves

• Track execution quality over headlines

WHAT TO WATCH IN 2026

• New capacity additions measured in MW

• Utilisation levels of existing facilities

• Hyperscaler and enterprise contract wins

• Power and energy cost trends

• Interest rate environment affecting funding costs

FINAL THOUGHTS

Data centres are becoming as essential to the economy as roads and power lines.

For Indian investors looking at 2026, the opportunity is real, but patience and diversification are crucial.

Understanding the business first makes the numbers easier to interpret later.

DISCLAIMER

Educational content only. Not investment advice. Investing involves risk, including loss of capital. Please consult a SEBI-registered investment advisor before making decisions.

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