Bullish for RELIANCE, ADANIENT: India's Data Centre Boom to Hit 8 GW

Bernstein projects India's data centre capacity to surge from 1.5 GW to 5-8 GW by 2030, driven by digital transformation. This massive expansion signifies a significant investment opportunity in digital infrastructure, crucial for India's growing digital economy.

This forecast highlights a major growth avenue for Indian businesses, particularly those with existing infrastructure advantages. The rapid increase in data centre capacity will fuel demand for land, power, and connectivity, creating a ripple effect across multiple sectors and attracting substantial capital expenditure.

Reliance Industries (RELIANCE) and Adani Group entities (e.g., ADANIENT) are specifically cited as prime beneficiaries due to their integrated capabilities. Power sector stocks like NTPC (NTPC) and Power Grid Corporation (POWERGRID) will also see increased demand for electricity generation and transmission, respectively, supporting their growth prospects.

Traders should monitor investment announcements from key players like Reliance and Adani in the data centre space. Watch for government policy support for digital infrastructure and any potential challenges related to land acquisition or power supply, which could impact project timelines and profitability.

• •India's data centre capacity could expand to the upper end of 5-8 GW by 2030 from about 1.5 GW currently.
• •Bernstein sees Adani Group and Reliance Industries as best positioned to benefit.
• •Key advantages cited for Adani and Reliance include access to land, power infrastructure, and transmission networks.
• •Risk flag: Regulatory hurdles in land acquisition and environmental clearances for power projects.
• •Risk flag: Fluctuations in fuel prices (coal, gas) impacting generation costs.