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Data Center Stocks & ETFs: Biggest Wealth Building Opportunity for 2030 - Rahul Jain – Transcript
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- Adani and Google announced a partnership in October 2025 to build India's largest data center for around $15 billion.
- Anantraj operates in real estate and has three operational data centers with an operational data center capacity of 28 megawatt.
- Amazon announced a 2025 capex of $125 billion and AWS is the highest cloud infrastructure market share company at 29%.
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In the next 5 years, data center space is going to give huge opportunities for building wealth for long-term. Have a look at this and you see that in the month of October 2025, Adani and Google announced their partnership and they're going to build India's largest data center which is going to cost them around $15 billion US and that's going to be ready by let's say 2030. Just 1 months after this announcement came Reliance's announcement that they have also created a JV partner and they are going to launch their second data center
that is going to be in AP and they're going to spend around $11 billion. This is the second data center that Reliance has announced in the last 12 months or so. And it's not just about Adanis and Amanis. Have a look at this data point where Amazon, Microsoft and Google together have pledged a combined investment of around $67 billion in India since October 2025. And if I were to break this down, Microsoft is saying
$17.5 billion. Amazon $35 billion, a company that I'll speak about in this particular video in quite a detail. And then finally, Google that has committed around $15 billion of investments in data center. Now if you're wondering why these big companies are investing in India, have a look at this screen here and this is talking about India's draft national data center policy 2025. This is going to be a gamecher policy if this gets implemented. Why? Because as per
the draft policy they are talking about giving 20 year conditional tax holiday food for data centers. I mean a country where in India we are paying income tax of around 30% and whatn not and corporate tax of more than 20%. All of a sudden if there is a policy that says that for 20 years there is a tax holiday for data centers guess what it's going to invite a lot of investment in India's data center ecosystem. So if you are an investor that is looking at a portfolio
for 2030 then data center sector should find some space in your portfolio in my view. And in this video I'm going to talk about couple of stocks and couple of ETFs that you can go and study and explore. I'll share my study and my research with you totally unbiased so that you learn about what's happening in data center space and you're not going to find this content anywhere on YouTube. If you don't know me, my name is Rahul Jan. I'm a full-time investor, a content creator and a segregistered research analyst. I do my independent
research and I share it on this channel in English. I also have started a Hindi channel. The love and the support I'm getting on my Hindi channel is phenomenal. Go and subscribe to that channel otherwise continue here in the English and I'm going to talk about now two stocks and two ETFs in data center theme.
The first company that I'm going to discuss is Anantraj. I talked about this company around 4 months back on my channel but there are a lot of updates in this particular company when it comes to data center space. So just a quick overview, this company operates into real estate. So they build residential businesses, luxury housing projects, affordable housing projects, so on and so forth. But they also have their annuity business and one of them is data center. Now let me give you a view on their data center business in terms of where it is, how much growth they are
seeing and what are likely to be the profitability from data center space. But before that if you look at this company's overall growth rate in the last 5 years if you look at the fundamentals revenue is growing at around 69% kagger iida profitability measure that is growing at around 76% kagger basis pat is growing at around 149% kagger basis these are some real numbers these are not in future these are past performances if you look at the last couple of quarters in 2025 then if
you look at the revenues grown at around 198% ibid at 259% and pat around 359% phenomenal growth is what we are seeing in fundamentals. Now coming to their data center business which is what I want to talk about. If you look at the first half of FY26 they did around 58 crores of revenue from data center and if you look at the total revenues they were around 1223 crores. So if you do some maths around 5% of their revenues came from data centers. This was the first time they started to get some
revenues coming from data center stream. Now the question comes Rahul what is the profitability of this 5% revenue that the data centers are generating? Is their data center business profitable? So what their management said is that the IBIDA of data center segment is around 75% and the PAT is around 43%. So very very healthy profitability is what their data center workstream is giving.
But the question comes it's only what 52 crores 58 crores which is only 5% of their business. Well here is what the data that you need to know that by FY27 they are projecting that the data center segment is going to give them around 1,200 K of revenue. This is what their projection is. I don't know whether they will be able to fulfill it or not. Of course, there is always a risk when the management is projecting such a huge number but that's what the reality is
that the management is saying 1200 kes of revenue from data center by FY27. Okay, Rahul understood how much of data center capacity they have right now. So as of now they have around 28 megawatt. Now why data center capacity is in megawatt? I've explained all of that in my first video on data center. This video please go and watch that video.
You are going to learn some basics of data centers in that particular video. In fact, I covered Anantra there also one another company that I talked about in that particular video. Go and watch that video. You're going to learn a lot. But coming back 28 megawatt of operational data center capacity and just to break it down, they have three data centers. One is Manis near Guram, Panchula, I think it's in Punjab, or Hana, whichever state and then Ry, this is near Sony. These three data centers are being built right now and these three are operational as of now. If I
talk about the future growth prospect of data center they're talking about by 2030 around 307 megawatt of capacity and just to put this in some context Reliance and Adanis and Google's they are talking about 1 gawatt here they are talking about 307 megawatt so by 2030 it's going to be almost one/ird of Adanis and Google's that's the sort of scale that this company is operating at but very very recently just 30 days back they also announced investment of 4,500
crores in data center facility in Andhra Pradesh I feel like everybody is going to Andra Pradesh now. Google and Adani announced their data center in Andhra Pradesh. Reliance also announced in Andhra Pradesh and now this company as well moving to Andhra Pradesh. I don't know what AP guys are doing but they are pulling some good investment into their state which is very very good for them.
So overall if you ask me their data center team is likely to do well in the next four to 5 years. Of course in the short term prices may fluctuate. A lot of risks might come into the picture but if you're looking for long-term investments go and study this company. There is a lot of information that I have not covered. Please go and explore that as well. Now, from shareholders or investors perspective, couple of things that you need to know. In the month of October, they did a QIP, qualified institutional placement around 1, 1100 crores and they had set up around 662
per share as the price for that. And which companies invested in that? You can see the good companies here Morgan Stanley, Jupiter, India, Kotak, Mindra, all of these had a share from that QIP and the floor price was 662 per share. Also very recently in the month of December 2025, the promoters bought the company's stake back at around 507 per share. These are some of the points that will allow you to look at this company from a holistic perspective. I've talked about fundamentals. I've talked about QIP. I've given you a lot of information. Please go and explore this
company. By no means don't take this company as a recommendation here. Why? Because there are a lot of risks. What are the risks here in this company? For example, all of a sudden, let's say in US data center theme, AI theme comes crashing. What's going to happen to Indian uh real estate or data center stocks? They're also going to feel that pressure. Definitely all of a sudden let's say a Chinese company comes out in the market and says that we have the best data centers or the best AI technology. Then US might come under pressure. India might come under
pressure. Those are some risks that are inherent in data center. Therefore, if you want to get into data center space, don't look at this as a short-term trade opportunity. Only look at 2030 and make sure you have a strong heart. With that, let's now move to our second company that is Amazon. Look, if you're discussing about data centers and AI and if you're not talking about companies like Amazon and Google, then your discussion is incomplete in my view.
There are few things that you need to know about Amazon that nobody is talking about. First of all, have a look at this data and you will see that in August 2025, Amazon announced that we're going to spend around $und00 billion in data centers and that is more than the GDP of many countries. Now one of the problems with Amazon that shareholders have witnessed is that in the last 5 years the stock have not really made them wealthy because it's gone up by only around 41% in the last 5 years cumulatively. That's not a growth you
expect from a company like Amazon if you're a shareholder of this company. Now you will say that Rahul maybe it's that the company is not giving growth in their fundamentals. Maybe that's why the shareholders are not very very happy. Well that's not the case. If you look at the last 5 years, revenue grown at around 14% of kagger. From a profitability perspective, look at ibida 26% annual growth rate in the last 5 years. Net income which is profitability 34%. So from a growth perspective, you can see these numbers in the last 5 years. So why the shareholders have not
been very happy? Maybe because the valuations 5 years back were very very high and the fundamentals were behind the valuations and that might have been the problem when it comes to the shareholder returns. Now let me walk you through something very very interesting about Amazon. What you see on my screen is their net sales. And you will note that it's been very very flat in the last four quarters. It's just the quarter three which is the October ending 2025. They have done pretty well.
Around 13% year-on-year growth is what we have seen. That is a very very good quarter from Amazon's history perspective. But more importantly if you look at where their revenues are coming from North America the green pie chart you see here which is 59%. Right?
international like for example India and many other countries 23% and AWS which is where their data center business sits is at around 18%. But if I talk about this AWS section here what you will know is that have a look at this data and you will see that AWS of Amazon is the highest cloud infrastructure market share company at 29% followed by Azure Microsoft's Google cloud is far far behind and Oracle and others are far far
behind. So AWS is number one when it comes to cloud infrastructure. I'll speak about AWS in a minute. Why there is likely to be a good growth in their AWS business which also in-house the data center business. But before that if you look at the profitability of Amazon Q3 of 2025 has been very very good. 38% year-on-year increase in their profitability. We have not seen this kind of growth in their profitability in the last I would say two to three years.
But one of the big concern that investors have around Amazon is the free cash flow. Have a look at this data point and you will note that the free cash flow has been coming down. What is free cash flow? Simply if you look at the operational cash flow and if you remove all the investments you come to free cash flow. What is happening here is that the operational cash flow is strong but they're investing a lot and that's why the free cash flow is coming down. It's down around 69%. If I show you the breakdown of this from a investment perspective, see the purchase
of properties and equipment etc. And you will note that it has been steadily going up and that's why their free cash flow is coming down. Investors sometimes get really worried in terms of why this company is putting so much of money in investments. Are they going to get the return back or not from their investments? Sometimes that spooks investors out and that might be playing out with Amazon right now because have a look at this picture here. Amazon has announced now $125 billion of capex in
2025. This is huge and they've raised this multiple times. One of the investment that they're doing is in this chip called Trrenium. I'm going to play a little clip from this video so that you get to understand what this Tranium's capabilities are. Last week, Amazon didn't just announce a new chip. They dropped a bomb on the entire AI industry.
>> Now, from this video, you saw what the capabilities of Trrenium could be in the future. And more importantly, if you see the growth of AWS business that Amazon has is being driven by tranium. 150% of quarterly revenue growth is coming from tranium. This is mind-boggling. This could be a gamecher in my view. Now technology like trrenium needs huge investments and this is also a kind of a risk or a caution where investors say that is this gamble they are calling it
gamble in terms of lot of money companies putting in is this gamble going to give them returns or not? And we don't know, you don't know, I don't know. Again, it really is in future. But if you are bullish about data center theme, if you're bullish about AI, then you need to know that Amazon is pumping a lot of money, more money than likes of Google's and metas. My last point on Amazon before I shut up and if you look at the valuations here, PE if you look trailing 12 month around 32 and if you