Netweb Technologies to Anant Raj: How data center stocks performed in 2025

India’s data center industry has emerged as one of the fastest-growing sectors in recent years. The domestic data center market is growing at a breakneck speed, driven by rapid cloud and AI adoption and digitisation of business and consumer services.

According to research firm IMARC Group, India’s data center market size stood at $5.03 billion in 2024 and is projected to grow at a CAGR of 10.4% to reach $12.85 billion by 2033. Meanwhile, Jefferies report expects domestic data center installed capacity to expand fivefold to 8 GW by 2030, aided by regulatory data localisation requirements, rising data consumption, growing cloud and AI adoption and deployment.

2025 data center stock performance snapshot

*3‑year return not calculated for Netweb Technologies and KRN Heat Exchanger as the stock were listed recently

**YTD return as of December 12 closing

Data center stocks have shown mixed performances in terms of YTD returns. Cummins India stands out with a strong 40.5% YTD return backed by a robust demand outlook for data center power solutions and healthy revenue and profits. Meanwhile, newly listed Netweb Technologies and KRN Heat Exchanger posted decent stock returns.

Meanwhile, Anant Raj, Aurionpro Solutions, and E2E Networks reported sharp corrections on a year-to-date basis, despite delivering exceptional returns over the last three years. The recent correction in the stock indicates profit booking after a strong rally in these stocks.

Netweb Technologies

Netweb Technologies is a leading provider of high-end computing solutions, encompassing high-performance computing (HPC), private cloud HCI, AI systems, and data center servers. The company achieved revenue of ₹604.9 crore in H1FY26, rising 51% YoY. Its AI systems business contributes 25% of revenue and witnessed a 160% YoY growth due to global AI demand and its Skylus.ai product. The company has robust organic order book of ₹493.9 crore as on September 30, 2025 together with recently secured large strategic orders of over ₹2,100 crore

In September 2025, it received two sizable orders for AI systems from NVIDIA Blackwell and Tyrone AI GPU systems. Its position is strengthened by alliances with NVIDIA, Intel, and AMD, as well as assistance from the India AI Mission. Management expects 35–40% revenue CAGR over 2–3 years with EBITDA margins of 13–14%, backed by 3% R&D spend and LC-backed orders ensuring stable cash flow.

Anant Raj

Anant Raj is a growing data center company, especially in the NCR region, operating its Anant Raj Cloud platform alongside Tier III‑aligned facilities in Manesar, Panchkula, and Rai. The company recently secured a 3MW private client deal at Manesar. And targets to further expand its data center facilities, co-location and cloud services across three locations, i.e. Manesar, Rai and Panchkula, to 117 MW IT load by FY28. Through its partnership with Orange Business, the company is expanding beyond co-location to provide a full cloud stack with PaaS and SaaS.

Cummins India

Cummins India is a key backbone player for data centers, supplying large diesel generator sets that provide backup and prime power to hyperscale and enterprise facilities across India. In the data center segment, it operates in the 2,000 to 3,000 megawatt range, where it has a leadership position despite increasing competition from global and Chinese brands. Data center have become a big growth driver within its Powergen business and comprise about 40% of Powergen sales in Q2FY26, alongside demand from infrastructure, airports, hospitals, and e-commerce. The company is expanding capacity and reducing lead times, specifically to address upcoming domestic hyperscale data center opportunities, even as it remains cautious on export markets.

E2E Networks

E2E Networks Limited is a cloud infrastructure and GPU compute provider that delivers scalable, high‑performance computing services. It serves a wide range of clients, including AI startups, small and large businesses, the government, and educational institutions across industries. The company operates through four data center in Tamil Nadu, Maharashtra, and Delhi NCR and recently secured two orders under the IndiaAI Mission, totalling ₹88 crore and ₹177 crore.

Key growth drivers

Future outlook for the data center industry

India’s data centre market is entering a high-growth phase, fueled by digital transformation, cloud adoption, and AI-driven workloads. The industry is expected to mature from simple colocation facilities to more modern, efficient, and integrated designs that address hyperscalers, enterprises, and emerging technologies. The next phase will be driven by AI-ready high-density data centers for GPU-heavy computing and edge data center across tier-2 and tier-3 cities for latency-sensitive applications like IoT, gaming, and AR/VR. Sustainability and efficiency will be prioritised through renewable energy, liquid cooling, and AI-powered energy management. Additionally, data centers are offering value-added services such as managed hosting, cloud connectivity, disaster recovery, hybrid cloud, and security/compliance services, which are crucially important in the government and BSFI sector.