Top Data Center Stocks to Watch in India in 2025: Key Players and Growth Prospects

Introduction to Data Center Stocks in India in 2025

By 2025, India's data center market is a building block for digital transformation, driving innovation in cloud services, AI, and big data analytics. While India generates around 20% of the globe's digital data, the nation's data center infrastructure now comprises only about 3% of the world's total capacity—indicating tremendous scope for development and investment to come. India's installed data center capacity reached over 1,260 MW by April 2025, with predictions expecting further growth beyond 2,000 MW by the end of the year, driven by increasing cloud adoption, government data programs, and ongoing demand for remote working and internet usage.

As of February 2025, India has 153 up-and-running data centers, most of which are in cities such as Mumbai, Bengaluru, and Delhi NCR, and several more in the process of construction to address growing requirements. India's data center space will draw more than $25 billion worth of investments set to drive capacity past 4,500 MW by 2030, according to the strength of the sector's growth and new investment opportunities in listed firms driving this wave of digital infrastructure.

 

Reason to Invest in Data Center Stocks in India?

Data centers play a crucial role in maintaining the digital infrastructure that powers online services. Here’s the reason why this sector is gaining traction among investors:

India’s digital economy is growing rapidly, spurred by greater internet access, smartphone usage, and government programs like Digital India, leading to increased demand for data storage. The growing adoption of cloud computing has further increased the need for data centers. Local data storage laws also drive demand for these facilities. Emerging technologies such as Artificial Intelligence, 5G, and IoT require large-scale data storage, while government incentives make the data center industry an appealing investment opportunity.

 

Key Factors to Consider When Investing in Data Center Stocks

The growth of data center stocks is influenced by infrastructure growth . Hence,  keeping up with technological advances is essential for long-term success. Before investing, consider these factors:

Financial Health: Analyze revenue growth, profitability, and cash flow. Strong financials indicate a company’s ability to sustain growth.

Market Position: Evaluate the company’s standing within the industry. Does it have a competitive advantage or significant market share?

Growth Prospects: Assess expansion plans, partnerships, and use of new technologies.

Technological Innovation: Look for investments in AI and energy efficiency.

Regulatory Environment: Monitor data privacy and security policies that may affect operations.

 

Best Data Center Stocks in India ( as of September 2025)

 

How to Begin Your Investment Journey in Indian Data Center Stocks

Discover a range of investment opportunities in data center stocks that cater to various risk levels and investment strategies, including direct stock purchases, mutual funds, and ETFs. Kickstart your investment journey today by opening a complimentary Demat trading account with Enrich Money!

 

Top Three Data Center Stocks in 2025

Based on 5 years growth percentage, the top three data center stocks to invest in 2025 are

• ABB India Limited

• Anant Raj Limited

• Cummins India Limited

ABB India Limited

ABB India Limited , whose one of its industries is data center which offers advanced solutions for power distribution, automation and energy management. They offer efficient electrical systems, smart grid technology, integrated management systems to optimize data center operations. ABB is a part of ABB Group, a global forerunner in offering solutions for electrification and automation.

ABB India Ltd. still shows solid fundamentals, underpinned by years of stable performance and a healthy multi-segment order book that crossed Rs.10,000 crore in 2025. Core parameters like revenue and return on equity have shown consistent double-digit growth during the last three years, though recent quarters saw some weakening in profits mainly attributed to currency headwinds and increasing operating costs.

While valuation multiples like price-to-earnings and price-to-book are high—positioning ABB India above industry averages and indicating that its shares are comparatively costly—the hidden financial well-being and industry outlook are still optimistic. The dividend yield of the company stands at approximately 0.28%, which is still lower than the industry's 0.46% average. Even after a significant share price correction of around 24% till now in 2025, the long-term picture for ABB India is bright, due to growing operational capacity, regular order wins, and proven resilience in serving customer demand across multiple business cycles.

 

Anant Raj Limited

Anant Raj Limited, which has ventured in the data center industry. The company is offering large scale data center services to Delhi -NCR region. Their main business focus is on enterprise efficient solutions and cloud services. Anant Raj Limited is a forerunner in the real estate business.

Anant Raj Limited's long-term financial health continues to be modest relative to top peers, primarily on the back of moderate historical profitability and return metrics. That said, newer figures show betterment: the previous three years have witnessed Return on Equity hitting 5.91%, as yearly sales increased by 25.1% and net profits by 38.3% year on year, reflecting improved execution and increasing revenues. Valuation multiples currently, including a Price-to-Book of 4.56 and a Price-to-Earnings of 51.04, are significantly above the industry norms, putting the stock at a premium compared to similar companies.

With a dividend yield of approximately 0.13%, Anant Raj lags behind the sector average of 0.67%. Its share price has returned more than 200% over the last one year, supported by accelerating earnings and positive investor sentiment. The price's uptrend is likely to continue in the short term on the back of strong business growth and sequentially improving revenues.

 

Cummins India Limited

Cummins India Limited, provides digital power solutions for data centers. It offers solutions for critical data center operations through UPS . Cummins advanced technology help to reduce emissions and energy consumption. They offer various other data center monitoring systems like real time data analysis and control.

Cummins India has shown solid financial performance throughout the last ten years, with sound growth and strong profitability. In the last three years, the company posted an average Return on Equity of around 27%, with sales and net profit growing at impressive rates of about 20-25% and 24-39%, respectively. That being said, the company's more recent short-term growth in sales has been modest, at slightly less than 10%.

The stock is now priced at a premium compared to the sector, with valuation multiples like Price-to-Book at 12 and Price-to-Earnings at 59, both significantly above sector medians. The trend in share price is moderately positive, indicating potential for modest appreciation in the short run.

Cummins India has a dividend yield of around 1.3%, significantly higher than its sector average of 0.46%, underpinned by decent dividend payouts in the last fiscal. The stock has generated returns of over 110% in the last 12 months, indicating robust investor sentiment and consistent business tempo.

 

Conclusion

India's data center market is also quickly transforming, boosted by growing digital penetration and cloud computing demand. With operational capacity poised to exceed 2,000 MW towards the end of 2025, investments of considerable scale are in progress to fuel this growth. Major cities are seeing new facility additions, and India is emerging as a prime location for data storage and processing. Government incentives and regulatory assistance also boost sector growth. Market leaders such as ABB India, Anant Raj, and Cummins India are well placed to leverage this upswell, presenting sound investment prospect in the digital infrastructure segment.

To capitalize on these opportunities, consider investing in data center stocks through Enrich Money, which provides a simple and effective way to grow your portfolio. Open a free Demat account with Enrich Money and take advantage of these high-performing data center companies for secure and profitable future investments.

 

Frequently Asked Questions

What are data center shares, and why should investors pay attention to them in 2025?

Data center shares belong to companies that design, run, or maintain data centers, with high growth potential during India's digital growth in 2025.

 

Which are the top data center stocks in India for 2025?

Top stocks are ABB India, Anant Raj Limited, and Cummins India, which stand out for their technology leadership and strong market presence.

 

What are the most important factors that investors should consider before purchasing data center stocks?

Investors should look at financial solidity, growth opportunities, technology innovation, competitive advantage, and regulatory environment.

 

India's data center market is likely to perform in 2025?

India's data center capacity will surpass 2,000 MW by the end of 2025 due to rising digital adoption and favorable policies.

 

Why invest in data center stocks in India with Enrich Money?

Enrich Money offers easy management and access of data center shares with free Demat accounts and a simple investment platform.

 

 

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.