OpenAI-Tata data centre plan lifts AI infra plays
Indian data centre–related shares rallied last week, as Prime Minister Narendra Modi reiterated India’s ambition to emerge as a global hub for AI in the presence of OpenAI’s Sam Altman and Anthropic PBC’s Dario Amodei.
Shares of 10 companies involved in data centre development and its supply chain — spanning equipment manufacturers to power producers — added about $4 billion in combined market value last week as the country hosted a highprofile gathering of leading AI companies in New Delhi.
While India’s AI ambitions have been hamstrung by its lack of presence in building models or manufacturing semiconductors that help with computing, the country is emerging as a destination for data centers.
Alphabet Inc.’s Google and Microsoft Corp. have committed billions of dollars alongside local giants Reliance Industries and Adani Group.
E2E Networks, a cloud computing infrastructure provider that partners with Nvidia Corp., was among the biggest gainers, rising more than 18% this week. Netweb Technologies India, which manufactures supercomputing systems, climbed by a similar measure. Other notable gainers included AurionPro Solutions and Techno Electric & Engineering Co., while largecap engineering firms Larsen & Toubro and Adani Green Energy also advanced. Data centre shares are benefiting in part because there are no pure-play AI companies listed in India, unlike in other Asian markets.
The rally in data centre– linked stocks contrasts with a rout in software and related services providers, which have come under pressure as the rapidly advancing capabilities demonstrated by Anthropic and other AI firms threaten to disrupt their business models.
While companies such as Infosys and Tata Consultancy Services have announced partnerships to strengthen their AI offerings, investors remain cautious given AI’s potential to hurt their margins from productivity-linked services.
OpenAI said this week it will partner with Indian conglomerate Tata Group to build a data centre starting at 100 megawatts of capacity, with plans to scale up to 1 gigawatt.
At the upper end, a 1-gigawatt facility could cost between $35 billion and $50 billion. Separately, Anthropic said it will collaborate with Infosys to develop advanced artificial intelligence solutions.
Shares of 10 companies involved in data centre development and its supply chain — spanning equipment manufacturers to power producers — added about $4 billion in combined market value last week as the country hosted a highprofile gathering of leading AI companies in New Delhi.
While India’s AI ambitions have been hamstrung by its lack of presence in building models or manufacturing semiconductors that help with computing, the country is emerging as a destination for data centers.
Alphabet Inc.’s Google and Microsoft Corp. have committed billions of dollars alongside local giants Reliance Industries and Adani Group.
E2E Networks, a cloud computing infrastructure provider that partners with Nvidia Corp., was among the biggest gainers, rising more than 18% this week. Netweb Technologies India, which manufactures supercomputing systems, climbed by a similar measure. Other notable gainers included AurionPro Solutions and Techno Electric & Engineering Co., while largecap engineering firms Larsen & Toubro and Adani Green Energy also advanced. Data centre shares are benefiting in part because there are no pure-play AI companies listed in India, unlike in other Asian markets.
The rally in data centre– linked stocks contrasts with a rout in software and related services providers, which have come under pressure as the rapidly advancing capabilities demonstrated by Anthropic and other AI firms threaten to disrupt their business models.
While companies such as Infosys and Tata Consultancy Services have announced partnerships to strengthen their AI offerings, investors remain cautious given AI’s potential to hurt their margins from productivity-linked services.
OpenAI said this week it will partner with Indian conglomerate Tata Group to build a data centre starting at 100 megawatts of capacity, with plans to scale up to 1 gigawatt.
At the upper end, a 1-gigawatt facility could cost between $35 billion and $50 billion. Separately, Anthropic said it will collaborate with Infosys to develop advanced artificial intelligence solutions.
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