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India’s AI Data-Centre Boom Puts Three Stocks in Focus
India is building many more data centres to support cloud computing, artificial intelligence, and digital services.
Data centres are large facilities that store and process information.
India produces a large share of the world’s data but has a smaller share of its data-centre capacity.
Experts expect the country’s capacity to grow from about 2.1 GW to around 10 GW in five years.
MTAR Technologies makes components and power-related equipment used in the data-centre ecosystem.
Xtranet Technologies builds and manages data-centre infrastructure and earns recurring income from maintenance services.
KRN Heat Exchanger and Refrigeration makes cooling equipment needed for powerful computer systems.
The companies have reported strong growth, but their shares already trade at high valuations, so they must deliver on their expansion plans.
India’s data-centre capacity exceeded 2.1 GW at the end of the June quarter, with another 0.5 GW expected by year-end.
Jefferies expects India’s data-centre capacity to reach 10 GW within five years, nearly five times current capacity.
MTAR Technologies has a ₹5,943.3 crore order book and is expanding fuel-cell capacity for data-centre power solutions.
Xtranet Technologies has a ₹1,200 crore active bid pipeline and could increase margins as projects shift to managed services.
KRN Heat Exchanger and Refrigeration has expanded capacity sixfold while targeting ₹2,000 crore in potential peak revenue.
- Who
- MTAR Technologies, Xtranet Technologies, and KRN Heat Exchanger and Refrigeration are identified as potential beneficiaries, alongside hyperscalers including Amazon, Microsoft, and Google.
- What
- The article examines three Indian stocks that could benefit from the country’s expanding AI and data-centre infrastructure.
- Where
- India, with additional demand and business exposure in the United States, North America, and Europe.
- When
- India’s capacity data refers to the June quarter and the article’s company financial data primarily covers Q1FY27; valuation data is dated 10 September 2026.
- Why
- Demand is rising because of cloud computing, artificial intelligence, digital services, and the gap between India’s data generation and its data-centre capacity.
Growth Opportunity
Valuation and Execution Risks
India’s data-centre expansion
Growth Opportunity
India generates nearly 20% of the world’s data but has about 3% of global data-centre capacity, leaving substantial room for expansion.
Valuation and Execution Risks
The article notes that strong future growth may already be reflected in share prices, particularly for MTAR Technologies and KRN Heat Exchanger and Refrigeration.
Company growth prospects
Growth Opportunity
MTAR has a large backlog, Xtranet has recurring managed-services potential, and KRN is adding capacity to meet rising cooling demand.
Valuation and Execution Risks
The companies must execute their order books, convert bids into contracts, and utilise newly added capacity to justify current market expectations.
AI-related demand
Growth Opportunity
Hyperscaler commitments, higher AI rack densities, and increased cloud use are supporting demand for power, infrastructure, and cooling equipment.
Valuation and Execution Risks
The article says data-centre buildout is currently concentrated in the United States, while the companies’ future gains from India’s expansion remain dependent on continued demand and execution.
Key facts
- Current Indian capacity
- More than 2.1 GW at the end of the June quarter.
- Five-year capacity outlook
- Jefferies expects India to reach 10 GW, nearly five times current capacity.
- MTAR order book
- ₹5,943.3 crore as of 30 July 2026.
- Xtranet bid pipeline
- ₹1,200 crore, with 50% to 60% concentrated in data-centre and IT-operations tenders.
- KRN capacity expansion
- Manufacturing capacity increased sixfold; Plant II is projected to reach 80% utilisation by FY28.
- Reported valuations
- As of 10 September 2026, MTAR traded at 165 times earnings, Xtranet at 35.8 times, and KRN at 107 times.
Sources
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