01 Feb , 2026 By : Debdeep Gupta
Data Centre and AI-linked stocks jumped after Finance Minister Nirmala Sitharaman announced a tax holiday till 2047 for foreign companies providing cloud services globally from data centres based in India.
Shares of data centre- and AI-linked companies jumped in early trade on Sunday after Finance Minister Nirmala Sitharaman announced a long-term tax incentive for global cloud service providers in the Union Budget 2026.
Anant Raj Industries climbed over 5 percent to Rs 530, extending recent gains as investors cheered the government’s push to position India as a global data centre hub. E2E Networks surged nearly 7 percent to Rs 2,269, while Netweb Technologies rose 2.2 percent to Rs 3,213.8 in early afternoon trade.
In her Budget speech, Sitharaman said the government will offer a tax holiday till 2047 for foreign companies providing cloud services globally from data centres located in India. However, such companies will be required to offer services to Indian customers through Indian resellers, a condition aimed at ensuring domestic participation in the cloud services ecosystem.
The announcement was seen as a major policy signal for the data centre and artificial intelligence value chain, which includes real estate developers building large server facilities, cloud infrastructure providers, and companies supplying high-performance computing hardware. India has been attracting steady investment interest in data centres amid rising demand for cloud services, data localisation requirements, and rapid adoption of AI-driven workloads across industries.
The extended tax holiday provides long-term visibility for capital-intensive data centre projects, which typically involve high upfront costs and long gestation periods, and could accelerate global players’ decisions to scale up capacity in India.
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