Synopsis:
In the rapidly evolving technology sector, data center companies have emerged as crucial players, driven by the growing demand for cloud computing, digital storage, and IT infrastructure services. Recently, two data center stocks which are E2E Networks Ltd and Netweb Technologies Ltd experienced impressive gains, each surging over 50% in the past two weeks.
The surge of data centers in India is driven by rising digital consumption due to massive internet and smartphone use, rapid cloud and 5G adoption, and increased demand from AI and data-intensive technologies.
Government policies like data localization laws and the Digital India initiative, along with significant investments from both domestic and global companies, have accelerated this growth. Together with the growing need for secure and local data storage, these factors are turning India into a major data center hub in Asia.
India’s data center capacity is projected to nearly quadruple from 1.3 GW in 2024 to 5 GW by 2030, attracting capital investments estimated between $20 and $22 billion. Valued at around $10 billion today and growing at a 25% CAGR, the market boasts an 85% utilization rate and one of the world’s lowest development costs at $5.5 million per MW.
This robust growth, driven by increasing demand for cloud services, AI workloads, and digital transformation, positions India as a highly attractive destination for data center investments with key hubs in Mumbai, Chennai, and Hyderabad leading the expansion
E2E Networks Ltd
E2E Networks Ltd is an Indian IT infrastructure company specializing in providing data center services, cloud computing solutions, and managed hosting services. Founded with a focus on delivering scalable and reliable infrastructure, E2E Networks supports enterprises across industries by offering services such as private cloud, hybrid cloud, and custom-built data center solutions.
With a market capitalization of Rs. 6,440 cr, the shares of E2E Networks Ltd are currently trading at Rs. 3,241 per share, from its previous close of Rs. 3,265 per share. The stock has surged 50% from Sept 1st opening of Rs. 2,280 per share to today’s high of Rs. 3,428.20 per share.
Netweb technologies Ltd
Netweb Technologies Ltd is an Indian IT infrastructure company specializing in high-performance computing (HPC) solutions, including supercomputers, private cloud services, AI systems, and data center infrastructure. Netweb is known for its custom-built computing solutions, serving enterprises across industries.
With a market capitalization of Rs. 17,194 cr, the shares of Netweb technologies Ltd are currently trading at Rs. 3,035 per share, from its previous closing of Rs. 3,130.20 per share. The stock has surged nearly 50% from Sept 1st opening of Rs. 2,219 per share to recent high of Rs. 3,314 per share.
Written by Manideep Appana
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