5 Stocks That Could Benefit From Karnataka Government’s ₹1,300 Crore Data Centre Push
5 Stocks That Could Benefit From Karnataka’s 1 GW Data Centre Push With ₹1,300 Crore Policy Outlay
5 Stocks That Could Benefit as Karnataka Targets 1 GW of Data Centre Capacity With ₹1,300 Crore Policy Outlay
India's growing digital economy has increased the need for more secure and reliable data infrastructure. Installed power capacity in data centers was around 375 MW in 2020. The installed capacity has grown to 1.57 GW by August 2026. Capacity growth is expected to reach almost 8 GW by 2030.
Investments of about USD 70 billion have already been made in the Indian data center industry, while another USD 90 billion worth of projects have been announced.
Karnataka Sustainable Data Centre Policy 2026–31
The Government of Karnataka has formulated the Sustainable Data Centre Policy for the period of 2026-2031, and has set a very high ambition that the state should be able to occupy 10-12% of the total data center capacity in India by the year 2031. This will result in a cumulative capacity of 1 Gigawatt (1 GW).
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Key Objectives and Sustainability Focus
Implementation follows a phased five-year roadmap starting with policy operationalisation, investor facilitation, and the identification of dedicated data centre zones and parks, followed by ecosystem expansion, R&D, and skill development. The policy heavily emphasizes environmental sustainability by promoting:
Greater adoption of renewable energy sources.
Advanced cooling technologies and robust water management.
Strict monitoring of Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE).
Expansion Beyond Bengaluru: Focus on Mangaluru
Despite the existence of 32 data centres in Karnataka including hyperscale, colocation, and edge data centres alike, the Government of Karnataka is smartly positioning Mangaluru as one of the primary locations for data centers.
This location has been developed using more than $240 million worth of investments from the GCC and technology companies in the last four years, and has huge plots of land with port-linked logistics and cable landing stations (CLS).
Broader Industry Context
This policy comes at a time when the global capacity of data centers is set to increase from 103 GW in 2025 to 200 GW by 2030. The Indian capacity is estimated to reach around 8 GW by 2030. Industry experts point out that even though there is great talent and technology in Karnataka, the key lies in creating construction capability through AI.
Karnataka Marine Biotechnology Policy 2026–31
The Government, on a parallel track, has also passed the Karnataka Marine Biotechnology Policy 2026-31 with budget provisions of ₹120 crore. The objective is to increase Karnataka's Blue Bioeconomy from $2 billion to $6–$8 billion by 2031 and generate around 2,500 high-end jobs in addition to 7,500 livelihoods for coastal dwellers in Marine Biotechnology Zones, seaweed value addition, and blue carbon certifications.
Stocks in focus
E2E Networks Ltd
E2E Networks offers cloud computing and AI-centric infrastructure, such as cloud computing solutions using GPUs. Building 1 GW of data centres will meet the need for long-term investment in cloud, AI, and high-performance computing infrastructure, thus providing potential opportunities for the firm.
With a market capitalisation of Rs. 4,13,228 cr, the shares of E2E Networks Ltd were trading at Rs. 4654.60 per share, down from its previous close of Rs. 4,684 per share.
Anant Raj Ltd
Anant Raj has also been developing itself in the data centre sector along with the real estate sector. Expansion into new data centre locations as well as expansion of capacity from Bengaluru will provide growth opportunities for firms that have data centre capacities.
With a market capitalisation of Rs. 21,831 cr, the shares of Anant Raj Ltd were trading at Rs. 606.65 per share, up from its previous close of Rs. 602.35 per share.
Polycab India Ltd
Polycab offers wires and cables that are used in power transmission and distribution, buildings, and industrial applications. The increased number of data centres being constructed can help drive the demand for power and control as well as cabling required in data centres.
With a market capitalisation of Rs. 1,22,760 cr, the shares of Polycab India Ltd were trading at Rs. 8146.45 per share, up from its previous close of Rs. 8,139 per share.
Netweb Technologies India Ltd
Netweb Technologies offers high-performance computing, servers, storage, networking, and GPU-based computing solutions used in AI and data centre applications. Increased investment in data centres and AI infrastructures may drive the demand for their high-performance computing solutions.
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With a market capitalisation of Rs. 27,559 cr, the shares of Netweb Technologies India Ltd were trading at Rs. 4636 per share, up from its previous close of Rs. 4,614 per share.
CG Power & Industrial Solutions Ltd: CG Power deals in power systems and industrial electrical equipment like transformers and switchgear. With the need for an increase in data-centre capacity, there arises an area where electrical equipment manufacturers like CG Power can benefit from a demand opportunity.
With a market capitalisation of Rs. 1,37,615 cr, the shares of CG Power & Industrial Solutions Ltd were trading at Rs. 873.50 per share, up from its previous close of Rs. 865 per share.