Sterlite Tech Shares Surge 35% Amid AI Data Centre Push
Sterlite Technologies' stock has seen a remarkable surge of nearly 35% in just two days, driven by the company's strategic expansion of its data centre offerings to meet the increasing demand for AI infrastructure. The stock gained 13.5% on Tuesday, reaching Rs 112.8 on the Bombay Stock Exchange (BSE), after rising 19.3% in the previous session.
Expansion of Data Centre Solutions
In an exchange filing, Sterlite Technologies revealed its launch of a next-generation suite of data centre solutions designed to cater to the needs of hyperscalers, colocation providers, enterprises, and telecom operators. These solutions include high-performance fibre and copper cabling systems specifically tailored for smart buildings, campuses, and data centres. The company highlighted its copper systems, which provide secure and reliable data and audio-visual connectivity, and its fibre cabling, which ensures high-speed, low-latency networking.
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Partnerships and Market Growth Outlook
Sterlite also announced a partnership with Tech Data – India, a subsidiary of TD SYNNEX, to strengthen its distribution capabilities within the country. Tech Data, known for its expertise in emerging technologies like cloud, AI, IoT, and cybersecurity, will support the rollout of these solutions across India. Sterlite forecasts the global data centre market to grow to $517 billion by 2030, at a compound annual growth rate (CAGR) of 10.5%.
This announcement follows a significant joint venture with Dilip Buildcon, securing a Rs 2,631 crore order from BSNL to enhance connectivity infrastructure in Jammu & Kashmir and Ladakh under the BharatNet project. Despite the recent rally, analysts suggest that the stock could face a 17% downside, with the average target price for Sterlite Tech at Rs 93, reflecting some caution over the long-term outlook.
