Netweb Technologies to Anant Raj: How data center stocks performed in 2025

India's data center sector is experiencing rapid expansion, fueled by increased adoption of cloud computing and artificial intelligence, along with the digitization of both business operations and consumer services.

According to the IMARC Group, the Indian data center market reached a size of $5.03 billion in 2024. Projections estimate a compound annual growth rate (CAGR) of 10.4%, leading to a market size of $12.85 billion by 2033. A Jefferies report anticipates a fivefold increase in domestic data center installed capacity, reaching 8 GW by 2030. This growth is expected to be supported by data localization regulations, rising data consumption, and the increasing integration of cloud and AI technologies.

**2025 Data Center Stock Performance**

The performance of data center stocks in 2025 has been varied, as indicated by their year-to-date (YTD) returns. Cummins India has demonstrated strong performance, boasting a 40.5% YTD return. This is attributed to positive demand forecasts for its data center power solutions and solid revenue and profit figures. Netweb Technologies and KRN Heat Exchanger, both recently listed, have also shown respectable stock returns.

In contrast, Anant Raj, Aurionpro Solutions, and E2E Networks have experienced significant corrections on a year-to-date basis. This is despite the fact that they delivered exceptional returns over the past three years, suggesting profit-taking activities following a strong rally.

**Key Players**

* **Netweb Technologies:** Netweb Technologies specializes in high-end computing solutions, including high-performance computing (HPC), private cloud HCI, AI systems, and data center servers. In the first half of FY26, the company's revenue reached ₹604.9 crore, a 51% year-over-year increase. AI systems contribute 25% of revenue, showing a 160% year-over-year growth, driven by global AI demand and its Skylus.ai product. As of September 30, 2025, the company's organic order book was robust at ₹493.9 crore, supplemented by recently secured strategic orders exceeding ₹2,100 crore. The company anticipates a revenue CAGR of 35–40% over the next 2–3 years, with EBITDA margins of 13–14%, supported by a 3% R&D spend and LC-backed orders that ensure stable cash flow.

* **Anant Raj:** Anant Raj is expanding its presence in the data center market, particularly in the NCR region. It operates the Anant Raj Cloud platform, with Tier III-aligned facilities in Manesar, Panchkula, and Rai. Anant Raj recently secured a 3MW private client deal at Manesar and aims to expand its data center facilities, co-location, and cloud services across its three locations to reach a total IT load of 117 MW by FY28. Through a partnership with Orange Business, the company is moving beyond co-location services to offer a full cloud stack with PaaS and SaaS.

* **Cummins India:** Cummins India is a major supplier of large diesel generator sets for data centers, providing both backup and prime power to hyperscale and enterprise facilities throughout India. The company operates in the 2,000 to 3,000-megawatt range within the data center segment, holding a leading position despite growing competition. Data centers have become a significant growth driver within its Powergen business, accounting for approximately 40% of Powergen sales in Q2FY26. Cummins India is expanding capacity and reducing lead times to capitalize on upcoming domestic hyperscale data center opportunities, while maintaining a cautious approach to export markets.

* **E2E Networks:** E2E Networks Limited provides cloud infrastructure and GPU compute services, delivering scalable, high-performance computing to a diverse clientele. Its customers include AI startups, businesses of all sizes, government entities, and educational institutions. E2E Networks operates through four data centers located in Tamil Nadu, Maharashtra, and Delhi NCR. It recently secured two orders under the IndiaAI Mission, totaling ₹88 crore and ₹177 crore.

**Data Center Industry Outlook**

India's data center market is poised for substantial growth, propelled by digital transformation, increased cloud adoption, and the demands of AI-driven workloads. The industry is expected to evolve from basic colocation facilities to more advanced, efficient, and integrated designs tailored to hyperscalers, enterprises, and emerging technologies. The future will be shaped by AI-ready, high-density data centers for GPU-intensive computing and edge data centers in tier-2 and tier-3 cities for latency-sensitive applications. Sustainability and efficiency will be key, with a focus on renewable energy, liquid cooling, and AI-powered energy management. Data centers are also expanding their service offerings to include managed hosting, cloud connectivity, disaster recovery, hybrid cloud solutions, and security/compliance services, which are particularly important for government and BSFI sectors.