AI-Powered Data Centre Growth: Sterlite Tech Eyes $1 Billion Global Opportunity

AI-Powered Data Centre Growth: Sterlite Technologies Eyes $1 Billion Global Opportunity

India is poised for a major transformation in its data infrastructure. With a current capacity of 1.5 GW, the country’s data centre capability is expected to double to 3 GW in the next five years. Driving this rapid expansion is the surge in demand for AI-powered data centre growth. At the forefront of this wave is Sterlite Technologies Ltd (STL), which is aggressively tapping into the AI-led data centre market both in India and globally.

AI-Powered Data Centre Growth Set to Accelerate

Sterlite Technologies has announced a cutting-edge portfolio aimed at addressing the growing requirements of AI-driven data centres. This comprehensive solution spans advanced cabling to full-stack connectivity, designed to cater to hyperscalers, enterprises, colocation providers, and telecom operators.

According to STL’s Managing Director Ankit Agarwal, the company expects the enterprise and data centre vertical to contribute 25% of its revenue in the current fiscal, up from 20% previously. This growth aligns with the increasing reliance on AI applications that demand 10 to 15 times more compute power than traditional infrastructure.

Seizing a $1 Billion Global Market

Sterlite Technologies is eyeing a $1 billion global opportunity in the AI-powered data centre growth segment. The company is focusing on both domestic markets such as India and the Middle East, and international markets like Europe, the US, and Southeast Asia. STL has also invested significantly in precision manufacturing and intellectual property over the past 18 months, ensuring that its offerings are globally competitive.

Strategic Partnerships and Product Innovation

To strengthen its distribution network, STL has partnered with Tech Data India, a subsidiary of TD SYNNEX. This collaboration ensures that STL’s data centre products reach a broader customer base in India. The new-generation solutions comply with international standards such as ANSI/TIA-942, TIA-568, and ISO 11801, and come with a 25-year performance warranty.

The product lineup includes high-performance copper and fibre cabling systems, ideal for smart infrastructure and high-speed connectivity. Pre-terminated multi-fibre systems using LC/MPO connectors and STL Celesta’s high-density IBR technology provide scalable, low-latency solutions for inter-data centre connectivity.

Robust Market Response and Share Surge

Following the launch of its data centre portfolio, STL’s stock surged significantly. Shares hit a 52-week high of ₹119 on the BSE, marking a 42% increase over just two trading days. This rally reflects investor confidence in the company’s AI-powered data centre growth strategy.

Retail investors, holding around 30% of STL’s equity, have shown strong support. Promoters, including Twin Star Overseas, retain a 44.16% stake. The surge in trading volume highlights growing market interest in STL’s expansion into data centres.

Expanding Globally with AI-Powered Infrastructure

A key component of STL’s growth strategy is its expansion into global markets. The company is starting with India and the Middle East but plans to deepen its presence in Europe and the US, where it has already built a strong brand. This global push is fueled by increasing investments in data centre infrastructure across key regions.

The global data centre market is projected to reach $517 billion by 2030, growing at a CAGR of 10.5%. STL’s AI-driven solutions are positioned to meet the rising demand for high-speed, low-latency, and sustainable infrastructure, especially in the context of AI-powered data centre growth.

Focused FY26 Strategy

As STL prepares for FY26, it remains committed to scaling its optical and digital capabilities. The company aims to increase market share in optical fibre cables and enhance connectivity attach rates. The strategic focus is on driving growth through innovation, cost efficiency, and market expansion.

During its Q4 earnings call, STL emphasized accelerating its data centre business. By developing comprehensive solutions tailored to AI workloads, the company intends to solidify its position in a rapidly growing segment.

High-Performance Data Centre Solutions

STL’s next-gen data centre solutions are not only technologically advanced but also highly customizable. These offerings support rapid deployment and cater to specific needs of hyperscalers and enterprise clients. Copper systems guarantee secure, reliable AV and data connectivity, while fibre solutions support high-speed transmission over long distances.

In addition, STL’s pre-terminated cabling systems and high-capacity IBR technology provide efficient, scalable options for current and future data centre needs. This positions STL as a leader in AI-powered data centre growth.

Recent Strategic Wins and Future Outlook

Sterlite Technologies recently secured a ₹2,631 crore contract in partnership with Dilip Buildcon Ltd for BharatNet’s middle-mile network in Jammu & Kashmir and Ladakh. This project, under BSNL, reinforces STL’s role in India’s digital infrastructure development.

Looking ahead, STL is confident in sustaining momentum by leveraging its innovation capabilities, strategic partnerships, and robust manufacturing base. With AI workloads expected to drive a long-term data centre build-out cycle, STL’s proactive investment in this space makes it a key player in shaping the future of AI-powered data centre growth.

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