5 Stocks Investors Should Look Out for Amid Strong Data Center Demand

Synopsis: India’s data centre industry is entering a phase of unprecedented growth, driven by rising cloud adoption, artificial intelligence, digital payments, and government-backed digital infrastructure initiatives. As hyperscalers and colocation operators continue investing billions of rupees in new facilities, several engineering companies with order books exceeding Rs. 1,000 crore are well positioned to benefit from growing demand for power infrastructure, cooling systems, electrical equipment, and EPC services.

India’s data centre capacity is expected to more than double over the next few years, with industry estimates projecting investments exceeding Rs. 2 lakh crore by 2030. The country’s installed data centre capacity, currently around 1.3 GW, is expected to cross 3 GW by the end of the decade as global technology giants such as Microsoft, Amazon Web Services (AWS), Google Cloud, Yotta, CtrlS, AdaniConnex and Reliance continue expanding their digital infrastructure.

Unlike conventional commercial buildings, data centres require uninterrupted power supply, high-capacity transformers, precision cooling systems, electrical substations, transmission infrastructure and advanced engineering solutions. As a result, several engineering and EPC companies stand to benefit from this long-term structural opportunity.

1. Techno Electric & Engineering Company 

Techno Electric is among the few listed engineering companies with direct exposure to both EPC services and data centre development. The company has an order book exceeding Rs. 9,600 crore, providing strong revenue visibility over the coming years. Techno Electric & Engineering Company has a total market capitalization of approximately Rs.12,643 crore. The company’s shares were trading at Rs. 1087 apiece on the stock exchange, up by 1.21 percent during the session.

Beyond its traditional expertise in power transmission, substations and electrical EPC projects, Techno Electric is developing 250 MW of data centre capacity under its digital infrastructure business. As India witnesses rapid growth in cloud computing and artificial intelligence workloads, the company is well positioned to benefit from both infrastructure construction and long-term digital asset ownership.

2. Blue Star 

Blue Star, one of India’s leading air conditioning and commercial cooling companies, has an order book of over Rs. 7,000 crore. Blue Star has a total market capitalization of approximately Rs. 33,649 crore. The company’s shares were trading at Rs. 1636 apiece on the stock exchange, down by 0.99 percent during the session

Data centres require precision cooling systems to maintain server temperatures and ensure uninterrupted operations. As hyperscale facilities become larger and denser, demand for advanced HVAC and precision cooling equipment is expected to rise significantly. Blue Star’s expertise in commercial air conditioning, industrial cooling and mission-critical infrastructure makes it a key beneficiary of India’s expanding data centre ecosystem.

3. Voltamp Transformers 

Voltamp Transformers has an order book of approximately Rs. 1,600–1,800 crore and remains one of India’s leading transformer manufacturers. Voltamp Transformers has a total market capitalization of approximately Rs. 10,425 crore. The company’s shares were trading at Rs. 10,304 apiece on the stock exchange, down by 1.50 percent during the session

Every large-scale data centre requires dedicated power infrastructure, including high-capacity transformers, substations and backup electrical systems. The rapid expansion of cloud infrastructure, renewable energy integration and power transmission projects is expected to support long-term demand for transformers. With a virtually debt-free balance sheet and strong execution capabilities, Voltamp remains well positioned to benefit from increasing investments in digital infrastructure.

4. Kalpataru Projects International 

Kalpataru Projects International commands one of the largest order books in the engineering sector at over Rs. 65,500 crore. Kalpataru Projects International has a total market capitalization of approximately Rs. 23,638 crore. The company’s shares were trading at Rs. 1384 apiece on the stock exchange, down by 1 percent during the session

The company executes power transmission projects, substations, buildings, industrial infrastructure and civil engineering works across India and overseas. As new data centres require reliable transmission networks, substations and supporting civil infrastructure, Kalpataru is likely to benefit indirectly from rising investments in digital infrastructure. Its diversified EPC portfolio and strong execution track record further enhance its long-term growth prospects.

5. Skipper 

Skipper has an order book exceeding Rs. 8,500 crore, supported by its transmission and distribution EPC business. Skipper has a total market capitalization of approximately Rs. 5,964 crore. The company’s shares were trading at Rs. 528 apiece on the stock exchange, down by 2.12 percent during the session

The company manufactures transmission towers, poles and executes power infrastructure projects that play a crucial role in supplying electricity to large industrial facilities, including data centres. As India’s electricity demand rises alongside the expansion of hyperscale data centres, investments in transmission infrastructure are expected to increase, creating additional opportunities for companies such as Skipper.

Why the data centre theme matters

India’s digital economy is expanding rapidly, driven by increasing internet penetration, artificial intelligence adoption, digital payments, cloud migration and data localisation requirements. Data centres consume significantly more electricity than conventional commercial buildings and require sophisticated engineering solutions for power distribution, cooling, fire safety and network infrastructure.

According to industry estimates, India’s data centre market is expected to grow at a compound annual growth rate (CAGR) of over 20 percent during the next five years, making it one of the fastest-growing infrastructure segments in the country.

For investors, companies involved in electrical engineering, HVAC systems, transformers, power transmission and EPC execution could emerge as indirect beneficiaries of this multi-year investment cycle. Engineering firms with healthy order books and strong execution capabilities are likely to play a critical role in building the infrastructure required to support India’s digital transformation.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 5 Stocks Investors Should Look Out for Amid Strong Data Center Demand appeared first on Trade Brains.