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India’s Data Centre Boom Boosts Renewable Power and Cable Stocks
Data centres are large buildings filled with computers that need electricity all day and night.
India expects many more of these facilities to be built.
Their electricity demand could grow more than 13 times by FY32.
CleanMax supplies renewable power to businesses, including data-centre operators and technology companies.
Diamond Power makes the cables and electrical equipment needed to connect and operate these facilities.
CleanMax is adding battery storage to help provide power during peak hours.
Diamond Power is expanding its higher-voltage cable business and converting a plant to make copper cables.
Both companies are pursuing growth, but they could be affected if data-centre construction slows or expansion costs become difficult to manage.
India’s data-centre electricity demand is projected to rise from about 1 GW in December 2025 to 13.6 GW by FY32.
The sector is expected to attract more than US$100 billion in cumulative investment by 2027, according to estimates cited from CBRE.
CleanMax Enviro Energy Solutions has 6,831 MW of renewable-energy capacity built or under construction and serves commercial and industrial customers.
Diamond Power Infrastructure held ₹435 crore of dedicated data-centre cable orders as of 11 August 2026.
Both companies could benefit from sector growth, but data-centre construction slowdowns and capital requirements remain risks.
- Who
- CleanMax Enviro Energy Solutions and Diamond Power Infrastructure are the companies discussed.
- What
- India’s expanding data-centre sector is increasing expected demand for renewable electricity, battery storage, power cables and related infrastructure.
- Where
- The opportunity is in India; CleanMax also operates in the United Arab Emirates, Bahrain and Thailand.
- When
- The electricity-demand projection runs from December 2025 to FY32; the companies’ financial and operating targets mainly cover FY27 and FY28.
- Why
- Data centres require large, reliable supplies of around-the-clock electricity and specialized electrical connections as new capacity is built.
Growth Opportunity
Risks and Constraints
Rising electricity demand
Growth Opportunity
The Ministry of Power projection of 13.6 GW by FY32 could create substantial demand for renewable generation, storage and grid connections.
Risks and Constraints
The projected expansion depends on data-centre construction continuing at the expected pace; a slowdown could affect both companies.
Company positioning
Growth Opportunity
CleanMax has contracted data-centre and AI capacity, while Diamond Power has built a dedicated cable order book and is increasing exposure to higher-margin medium- and extra-high-voltage products.
Risks and Constraints
CleanMax must convert its contracted pipeline into operating assets while managing debt and construction capital, while Diamond Power must execute planned deliveries and improve capacity utilization.
Financial outlook
Growth Opportunity
Both companies reported strong Q1 FY27 growth, and management has issued expansion and earnings targets for FY27 and FY28.
Risks and Constraints
Renewable projects require substantial upfront investment, interest and depreciation, and both companies trade at premium price-to-earnings multiples according to the cited data.
Key facts
- Projected data-centre electricity demand
- About 1 GW in December 2025 to 13.6 GW by FY32
- Estimated sector investment
- More than US$100 billion by 2027, according to estimates cited from CBRE
- CleanMax portfolio
- 6,831 MW, comprising 4,174 MW built and 2,657 MW under construction
- CleanMax data-centre and AI capacity
- 1,852 MW of contracted renewable-energy power-sales capacity
- Diamond Power data-centre orders
- ₹435 crore as of 11 August 2026, equal to 11.8% of its executable order book
- Diamond Power FY27 revenue guidance
- ₹4,300 crore to ₹4,500 crore
- Key investment caveat
- Both companies may face risks from slower data-centre construction and the capital required for expansion
Sources
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