I see this thread is getting too much optimistic about Data Center value chain. Indeed I am optimistic and invested in few business as well however we should also check the Macro events and logistic issue, Supply chain constraints and Geo political uncertainties and Govt policies with respect to environment are downsides. You can’t have infinite Data centers. Elon musk and Even I guess Sunder also mentioned there are so many limitation with respect to expansion of Data centers. We need a vast data centers but our supply chain (I mean global) is not robust enough to accommodate expand as much as the requirements. Physical assets expansion takes time unlike paper assets. Due to these facts
Musk flags power shortages as AI 'limiting factor' in US, highlights China's energy edge; experts see room for energy cooperation - Global Times"%20he%20urged .
India produces about 20% of all world data and we have just 3% data center capacity. So it means someone else is taking environmental burden of our data.
So we will need to put our own data centers from self sufficiency, data security, job creation perspective.
We have discussed downsides as well in this thread if you go through it.
Yes, self-sufficiency, data security, and sovereign data are a must, but we need to plan and execute well as well with Green DC because by bringing data centers home, we aren’t just relieving others; we are importing a massive thirst for power and water. In a country already grappling with grid stability and water stress, localizing that environmental burden requires a massive leap in green energy infrastructure that we are still racing to build.
Disagree on Jobs Front. Construction provides a temporary boost in jobs, but data centers are ghost buildings; they run on incredibly lean teams once fully operational.
We normally see only direct job creation which is incorrect.
Look at demand from cables, cooling equipments, racks, switches, electronic components, power equipments, potential for solar/wind manufacturing etc.
All those will promote manufaturing.
I agree, second-order job creation will be there as you said but after a point, DC, once fully operational, will also come down and only maintenance-kind work will remain.
In this volatile world, countries are weaponizing whatever leverage they have. Be it supply chain, critical mineral, dollar assets, tarrfis etc.
So all concerns are secondary when we think from data security. We need to have capabilities here in India. We can’t wait for green DCs to come up. Off course it is important and we should plan for it. But first priority should be to localize data as soon as possible before any country leverage it against us.
According to WRI India research, as of April 2026, over half of India’s 278 data centers are located in extremely water-stressed areas.
with 75% concentrated in five states, Maharashtra, Tamil Nadu, Karnataka, Telangana, and Uttar Pradesh, competing with municipal and agricultural water needs.
Data centers rely on significant water for cooling towers and adiabatic systems to manage high server temperatures.
Primary data: Lawrence Berkeley National Lab (2024 report) has 4.4% for 2023 (176 TWh). Their projection: 6.7-12% by 2028.
EIA (Jan 2026) confirms data centers are the main driver of 1-3% annual U.S. demand growth through 2027, but gives no exact current %.
AI-driven surge makes rapid rise plausible; official figures lag the fastest estimates.
Excellent Blog by Stockedge Team on Data Center Covering 5 Major Companies (All 5 Covered in this Thread) That Will Benefit the Most
LINK:
Stocks mentioned arent that great
Kindly share your view and explain the thesis behind it.
Power infrastructure is an emerging structural theme with strong demand visibility across the value chain. Not a typical short-term upcycle, but a multi-year capacity-building cycle due to high demand of HVDC corridors, renewables, data centers & AI power demand, and grid modernization.
Source:
They have Covered 4 Names here with a strong order book, but i don’t agree on Railtel; the other three make sense.
can you pls mention what other three companies are in the artcle as its not opening for me. Also why dont you agree for railtel?
ABB, Hitachi Energy and L&T. May be Railtel limitation to Railways only
Log in using email and sign up for their newsletter; then it will work if you want to read the article. Other names are ABB, Hitachi Energy, and L&T.
I don’t agree with Railtel because purely governmental red tapeism is involved. And they will mostly rely on the railways’ budget. But if they keep doing partnerships as they did with Techno Electric and keep getting international orders, things could change.
Nothing’s wrong business-wise; the company is debt-free. Good ROE & ROCE, but I personally avoid PSUs
