India Data Centre Stocks 2026: Top Picks, Targets, Returns

Data centre capex is reshaping listed market leadership

Several Indian stocks tied to the data centre ecosystem have delivered outsized returns in 2026, with some names rising as much as 477% during the year. The surge has broadened beyond pure data centre operators into power equipment, cables, connectivity, networking and AI hardware. The key driver is the shift of spending from software layers to physical infrastructure that supports high-density computing. This has made “picks and shovels” businesses easier vehicles for public-market exposure to the theme. Broker commentary in the market has also focused on the limited availability of listed, pure-play co-location operators. That scarcity is pushing investor attention toward suppliers of equipment and components.

Sterlite Technologies leads 2026 returns among theme plays

Sterlite Technologies has been flagged as the biggest winner linked to the theme, with the stock up 488% in 2026. The move reflects how connectivity and network infrastructure are being treated as direct beneficiaries of capacity buildouts. Data centres require large volumes of fibre, structured cabling and related network gear to connect facilities, cloud nodes and enterprise demand points. The stock’s rally also sits alongside broader strong moves across multiple data-centre-adjacent categories. The wider basket includes power systems, electrical equipment, cooling, and fit-out work that typically scales with new campus construction. Market action suggests investors are rewarding companies seen as direct enablers rather than discretionary technology bets. But the theme remains stock-specific, with returns varying sharply by segment.

Nomura’s beneficiary list in industrial and power equipment

Among traditional industrial and power equipment companies, Nomura has identified six major beneficiaries of India’s data centre buildout: GE Vernova T&D India, CG Power, ABB India, Siemens, Hitachi Energy India and Cummins India. The brokerage’s top picks are GE Vernova T&D India and CG Power. Nomura has maintained a target price of Rs 5,675 on GE Vernova T&D India, implying an upside of about 17% from current levels. For CG Power, it has set a target price of Rs 1,050, indicating potential upside of 19.4%. Nomura’s view is anchored in the equipment intensity of data centres, where electrical distribution and reliability are core requirements. The thesis also leans on how quickly power-related bottlenecks can constrain data centre commissioning.

Why “listed operators” are not the easiest route in India

Nomura has argued that there are limited avenues to play the data centre theme directly in India. It noted that companies controlling nearly 80% of the co-location market are either unlisted or in the process of listing. Because of that, the brokerage believes investors should focus on data centre equipment and component manufacturers. It highlighted that these categories account for 60-75% of total data centre capital expenditure. This framing shifts the opportunity set toward electrical, cabling, cooling, and other enabling infrastructure. The approach also avoids dependence on which operator gains market share in co-location. In public markets, it makes the theme more accessible through established industrial names.

CG Power’s longer-run performance adds to the narrative

CG Power has been described as a multibagger stock in the context of this theme. The stock is up 33% in the past one year and 971.56% over the past five years, according to the provided data. Nomura believes CG Power and GE Vernova T&D India could be among the biggest beneficiaries of data centre opportunities due to product offerings and market positioning. The broker reiterated the same targets, pointing again to Rs 1,050 for CG Power and Rs 5,675 for GE Vernova T&D India. The focus is on grid-facing and distribution-facing equipment that expands with every new megawatt of data centre capacity. In practice, this includes the electrical backbone that powers racks and cooling loads.

Capacity projections show the scale of the buildout

India’s data centre industry is projected to expand quickly, with capacity expected to reach 1.4-1.5 GW by FY2025 and potentially quadruple to nearly 5 GW by FY2030. Another estimate in the provided material puts capacity at 1.3 GW in 2024 rising to over 5 GW by 2030, implying a near fivefold increase over the period. The growth is being linked to demand from cloud providers and digital services. Major markets such as Mumbai, Chennai, and Delhi-NCR account for around 80% of current capacity. Mumbai is also cited separately as India’s data centre capital with a 54% share of total industry capacity. The combination of concentrated demand clusters and new capacity corridors is shaping where power, land, and network investments flow.

Where the listed “picks and shovels” exposure sits

The material breaks the ecosystem into layers, arguing that the lower the layer, the more durable the demand signal. It lists “picks and shovels” categories as power and electrical equipment, cables and connectivity, cooling and HVAC infrastructure, and data centre real estate. It also lists several relevant listed proxies across these areas, including Siemens India, ABB India, Hitachi Energy India, CG Power and Industrial Solutions and Cummins India. For cables and connectivity, names cited include Polycab India, KEI Industries, Apar Industries and Finolex Cables. A separate set of examples also mentions infrastructure builders with proven data centre track records, such as L&T and PSP, as potential beneficiaries of an ongoing capex upcycle. Another cited hardware-side name is Netweb Technologies, linked to server manufacturing and AI compute localisation. Taken together, the approach emphasises exposure to the supply chain rather than picking winners among AI applications.

Key numbers and broker targets at a glance

Market impact: why power, equipment and real estate keep appearing

The market’s focus on equipment makers reflects how power distribution and reliability are binding constraints for data centre ramp-ups. More capacity implies more transformers, switchgear, grid automation, and backup power integration, which supports the industrial supply chain thesis highlighted in the material. The same logic extends to cables and connectivity because every incremental facility expands fibre and internal networking needs. Real estate developers building data centre parks, such as Anant Raj in the Delhi-NCR region, have also been cited as direct beneficiaries, with Emkay Global giving a target price of Rs 800 implying 24% upside from current levels. On the funding side, the material references large investment commitments and estimates for the buildout. Jefferies is cited as pegging facility capex at $10 billion (₹2.5 lakh crore) and leasing revenues at $1 billion by 2030. Separately, another estimate in the material references ₹5 lakh crore of capex over the next five years.

Analysis: what the data says about investable exposure

A consistent takeaway across the provided commentary is that listed exposure is more straightforward through the supply chain than through co-location operators. That is directly linked to the observation that about 80% of the co-location market is controlled by players that are unlisted or preparing to list. The equipment and component share of capex at 60-75% also supports the idea that suppliers can see demand even when operator market share shifts. Broker targets on GE Vernova T&D India and CG Power show how analysts are anchoring valuations to measurable order pipelines rather than narrative-only positioning. City concentration data, including Mumbai’s 54% share and the 80% concentration across Mumbai, Chennai and Delhi-NCR, helps explain why grid readiness and local power economics matter. The capacity trajectory toward nearly 5 GW by FY2030 provides a concrete scale backdrop for interpreting multi-year demand. But stock outcomes will still depend on execution, competitive intensity, and how quickly projects move from announcement to commissioning.

Conclusion: the theme is broad, but exposure is getting defined

The 2026 performance of data-centre-adjacent stocks, including Sterlite Technologies’ 488% rise, has sharpened investor attention on the infrastructure layers of the buildout. Nomura’s framework highlights equipment and components as a practical listed route, with GE Vernova T&D India and CG Power positioned as top picks and clear targets provided. Capacity projections of around 1.4-1.5 GW by FY2025 and nearly 5 GW by FY2030 outline why the capex cycle is being treated as structural. City concentration in Mumbai, Chennai and Delhi-NCR adds a geographic lens for tracking project momentum. Going forward, broker updates, new project commissioning, and further clarity on the listed operator landscape are likely to remain the key checkpoints for investors following the theme.