The Indian data center market size according to Mordor Intelligence is estimated at US$ 10.11 billion (bn) in 2025, and is expected to reach US$ 21.8 bn by 2030, growing at a CAGR of 16.61% during the forecast period.
This growth is driven by surging digital demand, including cloud adoption, 5G rollout, AI/ML workloads, government digital initiatives like Digital India, and data localisation mandates.
The market landscape reveals strong potential for long-term growth given India’s favourable demographics, expanding digital economy, and government incentives.
As the sector grows, companies catering to the data center ecosystem stand to benefit. Here are a few stocks from the midcap space that will benefit from the solid growth happening in the sector.
Please note, this is not a fundamental analysis. We have outlined two companies getting into the data center space, while the third is part of that ecosystem. The editorial highlights company details and plans and is not a recommendation in any form.
#1 Anant Raj
First on our list is Anant Raj.
Anant Raj is at the top of our list.
Anant Raj is a real estate and infrastructure development company based in New Delhi. The company develops residential townships, group housing, commercial spaces, IT parks, malls, office complexes, affordable housing, data centers, hospitality properties, and serviced apartments.
It has now established presence in data centers. The company intends to spend US$ 2.1 billion (bn) on data centres, joining an increasing number of Indian businesses hoping to capitalise on the nation’s booming demand for business process-led and artificial intelligence services.
The company’s technology parks in Manesar, Rai, and Panchkula is fully equipped to host state-of-the-art data centres with a total IT load capacity of 307 MW.
In Manesar, the company has operationalised 6 MW, including 0.5 MW cloud services. An additional 15 MW is ready for deployment in FY26, with 29 MW planned in subsequent phases.
At Panchkula, 7 MW is expected to commence in FY26 with subsequent 50 MW, being part of greenfield development.
Furthermore, Anant Raj is upgrading its existing campus at Rai to support a 100 MW IT load, with plans for an additional 100 MW through greenfield development.
Anant Raj Financial Snapshot (FY23 to FY25)
| Rs m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 9,569 | 14,833 | 20,600 |
| Sales Growth % | 107.2 | 55.0 | 38.9 |
| Net Profit | 1,444 | 2,645 | 4,215 |
| ROCE | 6.2 | 8.6 | 11.0 |
Source: Equitymaster
On the financial front, net sales have more than doubled in two years, while net profits have grown almost 3 times during the same period.
The company in Q1 FY26, saw net sales reaching Rs 5,924 million (m), a sharp increase compared to Rs 4,718 m in the same period last year. Net profits moved in tandem and jumped to Rs 1,247 m from Rs 895 m year-on-year (YoY).
Moving ahead, the company is swiftly expanding in the cloud services and date center space. It has launched a sovereign cloud platform, ‘Ashok Cloud’, on 0.5 MW IT load in collaboration with Orange Business, initially offering IaaS, with future expansion in PaaS and SaaS.
The company has signed a non-exclusive agreement with Orange Services as Technology Partner for Cloud Services as well.
On the real estate front, Anant Raj has substantial land bank across high-potential NCR locations, comprising 220 acres in Golf Course Extension Road and 100 acres in Delhi.
These fully paid, ready-to-develop land parcels are acquired at historically low costs and provide robust development opportunities and long-term visibility for upcoming projects without incurring additional capital outlay.
Overall, Anant Raj’s future growth is supported by its diversified project portfolio, strategic data center initiatives, focus on sustainability, and favourable market and economic trends.
#2 RailTel Corporation of India
Second on our list is RailTel Corporation of India (RailTel).
RailTel is an Indian Navratna public sector undertaking (PSU) established in 2000 and wholly owned by Indian Railways. While it provides a diverse range of telecommunications and IT services, the company is now diversifying into data centers.
It’s increasing capabilities in the fields of both cybersecurity and data centres. Techno Electric & Engineering Company and RailTel Corp have partnered to build edge data centres at 102 locations. RailTel has already begun the work of setting up these Edge Data Centres.
Additionally, it’s working to establish a state-of-the art 10 MW data centre in Noida through a private investment partnership.
Recognising the immense opportunities in the data centre sector, it has also signed MoUs with private entities like Anant Raj, L&T to jointly offer data centre colocation and managed services to RailTel’s customers.
RailTel Corporation of India Financial Snapshot (FY23 to FY25)
| Rs m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 19,635 | 25,678 | 34,775 |
| Sales Growth % | 26.8 | 30.8 | 35.4 |
| Net Profit | 1,891 | 2,462 | 2,998 |
| ROCE | 16.2 | 18.7 | 20.7 |
Source: Equitymaster
The company in Q1 FY26, saw net sales reaching Rs 7,438 m, a sharp increase compared to Rs 5,581 m in the same period last year. Net profits moved jumped to Rs 661 m from Rs 487 m YoY.
The profits were boosted not only by increased revenues but also by higher gross profit margins which rose to 16% from 15.4%.
The company with its deep expertise in signalling and communication, has been carrying out important projects to modernise train operations and improve safety.
One of the most significant projects the company is currently undertaking is the implementation of Kavach, the indigenous Automatic Train Protection system.
The company has been awarded 2 works for deploying Kavach covering 1,109 route kilometres track of East Central Railway. Moving ahead, RailTel will participate in all feasible Kavach tenders.
Another key focus area for RailTel is the upgrade of railway communication systems. The company has recently secured a project to develop the complete ground infrastructure for 4G LTE over 523 route kilometres in the Secunderabad Division of South-Central Railway.
Additionally, it is working on several electronic interlocking works in Northern Railway, East Central Railway, South Eastern Railway to upgrade the existing signalling system.
The company has a robust order book with a value exceeding Rs 72.88 bn.
RailTel’s transition from primarily a telecom infrastructure company into a comprehensive digital infrastructure and data center services provider is expected to boost its revenue streams and market presence significantly in the coming years, making it a key PSU player benefiting from India’s digital economy growth.
#3 Bajel Projects
Next on our list is Bajel Projects.
Formerly the engineering, procurement and construction (EPC) segment of Bajaj Electricals, the company has significant experience in power infrastructure.
Bajel Projects’ future plans include data center electrification as a key part of its long-term strategy under its “RAASTA 2030” six-year roadmap. This is the company’s six-year strategic roadmap to transform into a future-ready, globally recognised leader in power infrastructure.
The company has already entered into the data center service as a provider for the design and construction of a 220/33kV gas insulated switchgear (GIS) substation and transmission line extension for a colocation data center in Navi Mumbai, Maharashtra.
Bajel Projects Financial Snapshot (FY23 to FY25)
| Rs m | FY 23-24 | FY24-25 |
| Net Sales | 11,692 | 25,982 |
| Sales Growth % | NA | 122.2 |
| Net Profit | 43 | 155 |
| ROCE | NA | 3.3 |
Source: Equitymaster
The above results must be read in the context of a demerger that happened in 2023. The effective scheme date for the demerger was 1 September 2023, and Bajaj Electricals officially completed the spin-off of Bajel Projects Limited on 16 September 2023.
In any case, the company in Q1 FY26, saw net sales reaching Rs 6,076 m, a sharp increase compared to Rs 5,120 m in the same period last year. Net profits dropped to Rs 33 m from Rs 55 m YoY.
Moving ahead, the company plans to target high-voltage and technically complex EPC projects, where they hold a clear qualification and execution advantage. Bajel Projects also plans to build scale in select overseas markets by increasing product supplies and focussed EPC.
The company is looking to drive operational efficiency and cost control across manufacturing, procurement and execution to strengthen profitability.
Overall, Bajel Projects is positioned for sustained growth through a combination of strategic project selection, capacity expansion, and entry into emerging sectors like data centers, with a focus on improving profitability and operational efficiency.
Should You Consider Companies from the Data Center Space?
Companies entering the Indian data center space are positioned to benefit from a fast-growing, heavily invested, and strategically crucial digital infrastructure market driven by both private and government stakeholders with strong tailwinds continuing well into the next decade.
However, it’s always prudent to consider the risk, your own investment horizon, and to monitor upcoming financial results and sector developments before deciding.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.