Adani’s Green Data Centre Bet Powers Massive Rally In Energy Stocks

Adani Group’s aggressive expansion into green-powered data centres is turning its energy companies into one of India’s biggest artificial intelligence market bets. The conglomerate’s plan to invest $100 billion by 2035 into AI-ready infrastructure has sparked a strong rally across its listed power businesses at a time when India still lacks many pure-play AI companies.

Adani Green Energy shares have jumped nearly 70% this quarter, while Adani Energy Solutions and Adani Power have gained around 50% each. The surge has outpaced the broader BSE power index as investors increasingly see electricity and infrastructure firms as indirect beneficiaries of the AI boom.

At 3:30 PM on Friday, 8 May, Adani Green Energy shares closed at ₹1,350, or 1.1% down.

Why Is Adani Becoming An AI Infrastructure Play?

India’s limited presence in semiconductors and advanced AI hardware has pushed investors toward companies linked to the infrastructure supporting artificial intelligence. That includes power generation, transmission networks and large-scale data centres.

Adani Group is positioning itself as a supplier for hyperscalers through AdaniConneX, its data centre business that plans to build 5 gigawatts of capacity by 2035. The venture is already partnering with Google for a proposed $15 billion data centre project in India.

Reports also suggest Gautam Adani is in talks with Meta and Flipkart for possible partnerships in the sector.

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Can India’s Rising Power Demand Drive The Rally Further?

The growing use of AI is expected to sharply increase electricity consumption across India. According to an S&P Global report, data centre power demand in the country could rise almost fivefold to 57 terawatt-hours by 2030.

Market participants are increasingly betting that companies supplying renewable energy, transmission lines and related infrastructure could benefit from this long-term trend.

Adani’s strategy of using renewable energy to power data centres has also attracted attention as global tech companies look for greener operations. Analysts say this could help the group stand apart from many Western operators that still rely heavily on thermal power.

Local institutional investors, including banks, insurance firms and mutual funds, increased their stakes in Adani’s power-related companies during the January to March quarter, according to Bloomberg data compiled from BSE filings.

Still, some uncertainty remains because global technology giants such as Microsoft, Amazon and Google have not yet made major third-party data centre capacity commitments in India.

Sources:

The Economic Times