57 mins ago
India’s Data Center Boom Lifts Cooling Infrastructure Stocks
India is building many more data centers for computers and digital services.
These centers need special pipes, hoses, and cooling systems to stop the equipment from overheating.
Venus Pipes and Tubes is building a facility to make prepared sections of stainless-steel piping.
It has received a ₹185 crore letter of intent from a data center company.
Aeroflex Industries already makes hoses, piping systems, and cooling skids for these facilities.
Its cooling-skid business grew sharply in the first quarter of FY27.
The two companies could benefit as data center construction expands.
However, Venus must prove its new facility can make money, while Aeroflex must turn expected demand into continuing orders.
India’s data center capacity is projected to grow nearly sixfold, from 1.8 GW to 10.5 GW over five years.
Venus Pipes and Tubes is investing ₹70 crore in a pipe-spooling facility expected to generate peak revenue of ₹210 crore.
Venus has secured a ₹185 crore letter of intent from a large data center company, with the facility expected to begin operations by Q3FY27.
Aeroflex Industries’ liquid-cooling skid revenue reached ₹32.4 crore in Q1FY27, representing 23% of total revenue.
Both companies are targeting expansion, but analysts note execution, order conversion, margin, and valuation risks.
- Who
- Venus Pipes and Tubes and Aeroflex Industries are the two companies discussed as suppliers to India’s data center infrastructure market.
- What
- The companies are expanding or supplying stainless-steel piping, flexible hoses, pipe spools, and liquid-cooling skid assemblies for data centers.
- Where
- The opportunity is centered on India’s data center market, with Aeroflex also receiving skid orders from the United States and Europe.
- When
- The reported financial results are for Q1FY27; India’s data center capacity is described as expected to expand over the next five years, while Venus’s spooling facility is scheduled for Q3FY27.
- Why
- Rising computing density and planned data center construction are increasing demand for liquid-cooling and related infrastructure components.
Growth Opportunity
Execution and Valuation Risks
Data center expansion
Growth Opportunity
The projected increase from 1.8 GW to 10.5 GW and planned investment of ₹2-2.3 lakh crore could create substantial demand for cooling infrastructure suppliers.
Execution and Valuation Risks
The opportunity remains forward-looking, and both companies must convert projected demand and industry pipelines into sustained orders.
Venus Pipes and Tubes
Growth Opportunity
Venus is moving into higher-value pipe spooling, has a ₹185 crore letter of intent, and expects spooling to improve realizations and margins.
Execution and Valuation Risks
Venus must demonstrate that its ₹70 crore spooling investment can scale profitably; higher depreciation and finance costs already limited Q1FY27 net-profit growth.
Aeroflex Industries
Growth Opportunity
Aeroflex already supplies integrated liquid-cooling systems, expanded skid capacity, and reported strong Q1FY27 revenue and profit growth.
Execution and Valuation Risks
Aeroflex trades at a high valuation multiple cited in the article, and its growth depends on converting its pipeline into orders without weakening margins.
Key facts
- India data center capacity
- About 1.8 GW as of mid-2026, projected to reach around 10.5 GW over five years.
- Planned industry investment
- ICRA estimates data center players could invest ₹2-2.3 lakh crore over seven to 10 years.
- Venus spooling investment
- ₹70 crore, with expected peak revenue of ₹210 crore based on an asset turnover ratio above 3x.
- Venus data center LOI
- ₹185 crore from a large data center company for stainless-steel pipe spools.
- Aeroflex Q1FY27 revenue
- ₹145.4 crore, up 72.4% year over year.
- Aeroflex skid revenue
- ₹32.4 crore in Q1FY27, equal to 23% of total revenue.
- Reported valuation
- The article cites P/E multiples of 111.0 for Aeroflex Industries, 40.3 for Venus Pipes, and 21.7 for the industry as of 11 September 2026.
Sources
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