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Waaree Renewable Technologies (WRTL) announced on Saturday that its subsidiary Waaree Green Data Centers has incorporated a subsidiary, Sunstar Data Centers, to develop, finance, own and operate hyperscale, AI-ready and edge data centres. WRTL had announced in August that Waaree Green would be moved into Waaree Energies, the holding company of WRTL. This means Sunstar is expected to eventually be a step-down subsidiary under Waaree Energies. India’s data-centre capacity is expected to rise from 1.6GW in mid-2026 to6 GW by 2029, according to real-estate advisory firm JLL. AI makes the opportunity even more compelling: WRTL management estimates that AI-driven facilities require at least 10 times more power than conventional data centres. Integrated energy stack This could prove to be right up Waaree’s alley. The group is into solar power generation, and is expanding into transmission and storage. It acquired 55% of Associated Power Structures in June, adding transmission and distribution (T&D) capabilities, while battery energy storage system (BESS) is emerging as another growth engine. WRTL’s June-quarter (Q1FY27) bidding pipeline included over 10 GWh of BESS and ₹20,000 crore of T&D opportunities. Q1 revenues grew 53% year-on-year to ₹925 crore, while net profit was up 38% to ₹120 crore. Renewable power, which requires storage and grid connectivity for utilization, could potentially provide the reliable, clean power that data centres increasingly need. Waaree’s data-centre foray is thus a move further downstream—from building grid-connected renewable assets to developing, owning and operating data-centres. But WRTL has said it is pursuing engineering, procurement and construction (EPC) opportunities in data centres, with no firm data centre orders as of July. Sunstar is newly incorporated and is yet to commence operations. Data centres are capital-intensive, have long gestation periods, and require reliable power, specialized cooling, connectivity and operational expertise. The group is already undertaking a large investment cycle. Waaree Energies has ₹31,500 crore of announced projects, with ₹22,000 crore to be deployed by FY29. Adding data centres could further stretch capital and execution bandwidth. After dropping roughly 25% in a year, Waaree Energies stock trades at 8.6 times EV/Ebitda, based on FY28 Bloomberg estimates. While the data-centre boom presents a massive opportunity and Waaree’s integrated power model offers a distinct edge, market sentiment will hinge on execution—specifically whether this expansion translates into a high-return business.
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