Netweb Technologies to E2E Networks: Five data center stocks to watch out for in 2025

India’s data center capacity is set to nearly quadruple, rising from 1.3 GW in 2024 to 5 GW by 2030. This expansion is likely to attract a massive capital investment of $20 to $22 billion. The market, valued at around $10 billion and growing at a 25% CAGR, is supported by a utilisation rate of 85% and a low development cost benchmark of $5.5 million per MW, making India one of the most attractive destinations for data center investments.

Reasons for the surge of data centers in India:

• Speedy digital adoption: With more than 850 million internet users and rising smartphone penetration, India's digital environment is growing at a rapid pace. The proliferation of e-commerce, fintech, education technology, AI, and OTT platforms is driving demand for scalable data infrastructure at a massive scale.
• Favourable government policy & data localisation: Government support has played a big role in making India a hotspot for data center. Initiatives like Digital India, policies that recognise data center as critical infrastructure, laws requiring local data storage, and incentives on land, power, and faster approvals have all have strengthened India’s position as a data center destination.
• Underpenetrated market: India’s AI market is growing fast and is expected to reach $20–22 billion by 2027, with a strong 30% annual growth rate. At the same time, India creates about 20% of the world’s data, but has only around 3% of global data center capacity. This shows a huge opportunity to build more data center and support the country’s growing digital needs.
• Foreign investment: Global giants are making significant investments in Indian data center, with companies like Google, Amazon Web Services (AWS), Microsoft, and Blackstone pouring billions into new infrastructure to meet the soaring demand for cloud and AI services. Furthermore, OpenAI is planning a 1 GW AI data center in India under its global “Stargate” project.

E2E Networks

E2E Networks is an AI-centric company offering cloud computing data center services to its clients. Interestingly, infrastructure major Larsen & Toubro (L&T) has acquired a 21% stake in the company for ₹1,406 crore via preferential share allotment and buying promoter stake.

So far this month, the company’s stock has gained nearly 30% after securing a new order worth ₹177 crore from the Ministry of Electronics and Information Technology (MeitY) under the IndiaAI Mission. As per the company’s management, this new order win further strengthens its role in India’s national AI infrastructure ecosystem.

Anant Raj

Anant Raj, traditionally a real estate player, has rapidly scaled its data center and cloud services business. By Q1 FY26, it had 28 MW operational capacity, with two facilities – Manesar and a newly commissioned 7 MW Panchkula data center. In collaboration with Orange Business, the organisation has also begun integrating cloud services across both locations. Importantly, Anant Raj secured a large private sector client for a 3 MW IT load at the Manesar facility, signalling growing enterprise traction.

The company is establishing itself as a significant player in India's rapidly expanding data center market. The company has ambitious expansion plans across its Manesar, Panchkula, and Rai facilities, including both brownfield and greenfield developments. In Q1FY26, Anant Raj posted ₹592 crore in revenue, a 26% YoY increase, and PAT at ₹126 crore, up 38% YoY, highlighting strong operational performance alongside strategic growth.

Cummins India

Cummins India is a key supplier of power solutions to mission-critical sectors, including data center. In Q1 FY26, data center contributed 15–20% of Powergen segment sales, reflecting their growing importance in the company’s portfolio. Demand from this segment has been steady and is expanding in line with the wider data center boom in India. Cummins India has also launched Battery Energy Storage Solutions (BESS), which complements data center backup power by integrating with renewable energy sources such as solar.

In Q1FY26, Cummins India reported ₹2,859 crore in sales, up 26% YoY, with PAT at ₹770 crore, higher by 13%. Its Powergen segment, driven in part by rising data center demand, contributed ₹1,056 crore, growing 31% YoY.

Netweb Technologies

Netweb Technologies is one of the key companies powering India’s AI and digital infrastructure boom. A leader in high-performance computing (HPC) and advanced data center solutions. The company has deployed over 50 private cloud and HCI installations and is a supplier to major data center operators, such as Yotta Data and Akamai. Recent developments include the launch of Skylus.ai, an orchestration platform for AI workloads, as well as partnerships with NVIDIA to manufacture advanced servers. Netweb is also part of India’s PLI scheme for IT hardware, reinforcing its strategic role in India’s digital infrastructure build-out.

Netweb’s Q1FY26 revenue rose 102% YoY to ₹301.2 crore, with PAT doubling to ₹30.5 crore. This quarter, the company has successfully executed a large AI order in the critical defence sector.

L&T Cloudfiniti and AdaniConneX

L&T Cloudfiniti, the data center arm of Larsen & Toubro, is quickly gaining ground in India’s digital infrastructure space. It currently runs about 30 MW of capacity across Mumbai and Chennai, and has already locked in a 10-year, 6 MW colocation deal at its Chennai facility. The company is now scaling up fast, with plans to reach 90 MW by 2026 across new sites in Mahape, Panvel, and Bengaluru, and a longer-term ambition to hit 150 MW by 2027. This growth is backed by a significant ₹3,600 crore investment, reflecting L&T’s serious push into the data center market.

AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, is building one of India’s largest green data center platforms with a target capacity of 1 GW by 2030. It has over 210 MW of capacity with three operational data center (Chennai, Hyderabad, Noida) and more under construction across Navi Mumbai, Pune, and Vizag.

In March 2025, AdaniConneX partnered with Extreme IX to add a PoP at its Chennai data center, boosting interconnection and low-latency services. The company is also focused on developing strategically located facilities and delivering resilient, secure, and scalable infrastructure to meet future digital demands.

Before you go

India’s data center industry is undergoing a major transformation, driven by the rapid rise in digital adoption, AI-driven workloads, and cloud migration, alongside strong government support for data localisation. Big players are stepping up, with AdaniConneX building massive gigawatt-scale campuses, L&T Cloudfiniti making bold investments, and companies like Netweb Technologies, Cummins India, and Anant Raj helping power the ecosystem with cutting-edge technology, energy solutions, and real estate infrastructure. With sustainability and efficiency becoming top priorities, India is well on its way to becoming a global data center hub in the years ahead.