Indian data center stocks jump on PM Modi’s AI push

Indian data center stocks rose this week after Prime Minister Narendra Modi spoke about making India a global AI hub at a New Delhi summit with leaders including OpenAI’s Sam Altman and Anthropic’s Dario Amodei.

Shares of 10 companies in data center development and supply chains gained about US$4 billion, with E2E Networks and Netweb Technologies rising over 18%.

The rally is partly driven by investments from Google, Microsoft, Reliance Industries, and Adani Group.

While India faces challenges in AI model building and semiconductor manufacturing, it is emerging as a data center destination.

Software and services firms have declined amid concerns about AI disrupting business models.

OpenAI is partnering with Tata Group to build data centers, while Anthropic is working with Infosys to develop AI solutions, with plans for significant capacity expansion.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

A government-backed cloud plan sits behind the stock rally

Gains for firms such as E2E Networks track India’s $1 billion IndiaAI Mission, which aims to build national AI capability 1.
E2E, a cloud infrastructure provider, has won two government orders worth INR 265 crores to help government and enterprise clients build large domestic AI models 2.
E2E is building a new cluster with NVIDIA’s Blackwell GPUs (graphics processing units, chips commonly used to train and run AI models) to meet rising demand for AI computing power 1.
The effort aims to give startups and researchers access to high-end computing with lower upfront costs, supporting India’s goal of becoming a global AI hub 3.

India’s AI push aims for technological sovereignty beyond data storage

India is working toward a self-reliant AI ecosystem that spans energy, infrastructure, and applications 3.
Reliance Industries and Adani Group plan to use renewable energy assets to run data centers, which can reduce dependence on costly grid power and lower operational risk 4.
The buildout is meant to support sovereign foundational AI models trained on Indian languages and local data, a government priority 3.
The approach could guide other Global South countries that want AI capacity without full reliance on US or Chinese technology 3.