The Rise of Edge Micro Data Centre in the Edge Computing Era

Best 5 Micro Data Centre Stocks in India

India’s digital backbone is transforming at breakneck speed. With the rollout of 5G, widespread IoT adoption, AI-driven applications, and a growing need for real-time data processing, traditional hyperscale data Centres are no longer sufficient. Enter the Micro Data Centre (MDC)—compact, self-contained infrastructure units, typically under 250 kW, designed to bring compute and storage closer to the user.

Micro Data Centre Stocks in India

These edge micro data Centres are revolutionizing how data is stored and processed across Tier 2 and Tier 3 cities, smart grids, industrial sites, and telco towers. By enabling low-latency, decentralized computing, MDCs serve as the connective tissue for India’s AI, smart city, and 5G ecosystem.

What Is a Micro Data Centre?

A micro data Centre is a pre-integrated unit that bundles servers, storage, networking, power, cooling, and security systems into a compact, modular enclosure. Unlike hyperscale data Centres (10+ MW), MDCs operate with loads under 250 kW, often around 100 kW or less, and can be deployed rapidly in remote or space-constrained environments.

Micro Data Centre Use Cases:

• IoT device data processing (e.g., smart cameras, sensors)
• AI/ML workloads at the edge
• Real-time applications like AR/VR and autonomous vehicles
• Compliance-sensitive compute (banking, defense)
• 5G backhaul and private enterprise networks

The Indian Micro Data Centre Market

2.1 Market Size and Growth Forecast

India’s micro data Centre market is on a steep growth trajectory. It was valued at USD 164.2 million in 2023 and is projected to reach USD 1.54 billion by 2033, growing at a 25.15% CAGR. Narrowing down to “micro-mobile” deployments, 2024 revenue stood at USD 220.1 million, expected to hit USD 670.6 million by 2030 (20.4% CAGR).

The broader edge data Centre market—within which MDCs play a key role—will grow from USD 524.8 million in 2024 to USD 3 billion by 2033.

2.2 Edge micro data Centre Market Segmentation

• Form factor: Rack units up to 20U (26% CAGR) dominate, followed by 20–40U and 40–60U ranges.
• Key sectors: BFSI, IT & telecom, manufacturing, and defense are leading adopters.
• Geographical spread: Southern (32%) and Northern (28%) India lead in MDC deployments, driven by metro and semi-urban demand.

MDCs are fast becoming essential—not optional—in delivering ultra-localized, real-time services across India’s digital economy.

Key Drivers of Micro Data Centre Adoption in India

5G and Edge Computing

Next-gen networks require on-site processing for applications like AR/VR, smart factories, and autonomous systems. MDCs are perfect for enabling real-time responsiveness.

Smart Infrastructure and IoT

India’s smart cities and connected ecosystems rely on micro edge data Centres to process and store high-frequency data generated by IoT devices.

Data Localization and Compliance

With regulations like the DPDPA (Digital Personal Data Protection Act) and RBI data norms, localized data hosting is now mandatory for many sectors—boosting MDC relevance.

Cost and Energy Efficiency

MDCs deliver better PUE (Power Usage Effectiveness) and significantly lower OPEX compared to full-scale facilities, especially in edge locations.

Government Support

Incentives under Digital India, SEZ reforms, and green energy mandates (RE100 goals) support MDC deployment, especially for Tier 2/3 smart infrastructure.

Data Center Related Articles

Best 5 Micro Data Centre Stocks in India

1. Nxtra by Airtel

Nxtra operates 120+ edge data Centres across 65+ cities, tightly integrated with Airtel’s telecom backbone. These sub-200 kW units are optimized for latency-sensitive applications like OTT, AI/ML, and fintech.

• Current capacity: 107 MW in micro DCs, with a plan to double total capacity to 400+ MW
• Sustainability: Solar (48 MWdc) and wind (24.3 MW) projects, rooftop solar at 30 sites
• Investment: ₹5,000 crore committed for next-gen edge and AI infrastructure
• Partnerships: Strategic collaborations with Google Cloud, Adani Energy

Nxtra is evolving from a data Centre provider to a distributed edge-cloud infrastructure leader, serving both telecom and enterprise workloads.

2. Techno Electric & Engineering Co. Ltd (TEECL)

TEECL is building India’s largest public MDC network, having secured a RailTel contract to deploy edge data Centres across 102 cities.

• Hybrid model: Large hubs plus containerized edge MDCs (25–250 kW) for Tier 2/3
• Execution strengths: 450+ EPC projects; expertise in rapid modular builds
• Market fit: BFSI, telecom, smart infrastructure
• Order book: ₹9,200 crore with a strong MDC/edge component

TEECL stands out as a pure-play MDC EPC provider—an execution-focused company delivering India’s national edge data layer.

3. Netweb Technologies

Netweb is India’s only integrated MDC kit provider—offering pre-assembled racks with compute, storage, private cloud software, and AI-capable infrastructure.

• Edge-targeted products: Tyrone Skylus (HCI), Kubyts (containers), GPU-based systems
• Clients: IITs, JNU, public surveillance networks (204 sites), Akamai, Yotta
• Strategic edge: PLI-approved domestic server manufacturing
• NVIDIA collaboration: Co-developing AI-optimized MDC components

Netweb brings Make-in-India hardware leadership to the micro data Centre space, making it easier and faster to deploy edge computing at scale.

4. Schneider Electric Infrastructure Ltd (SEIL)

While not a direct MDC operator, Schneider is a vital enabler via its EcoStruxure™ Micro Data Centre systems—pre-integrated with power, cooling, and security.

• Technology stack: IoT-enabled, plug-and-play solutions for edge
• Use cases: Smart cities, EV charging, healthcare, telco towers
• Deployments: Modular systems for projects in Mumbai, Kolkata
• Platforms: EcoCare & Asset Advisor for remote monitoring

SEIL’s ability to standardize and industrialize MDC rollouts makes it a preferred partner for telcos, hyperscalers, and government projects.

5. Sterlite Technologies Ltd (STL)

STL supports the fiber and physical infrastructure side of micro data Centres with specialized products and services.

• Fiber innovation: Multicore fiber, compact cabling for MDCs
• Edge gear: Plug-and-play enclosures, AI orchestration tools
• Digital deployments: Health Centres (Mumbai BMC), broadband in UK, Ernet (India)
• Security focus: CyberSOC and hybrid edge-cloud protection tools

As a backend enabler, STL is integral to scalable, secure MDC deployments, especially in rural or Tier 3 India.

6. Anant Raj Ltd

Anant Raj is developing modular data center infrastructure through brownfield conversions of IT parks, with a rollout strategy that aligns with micro data center (MDC) scale in early phases.

    Modular model: Initial 3–7 MW blocks retrofitted into existing IT parks, suitable for near-metro and Tier 2 edge use cases

    Deployment strategy: Phased capacity expansion from 3 MW to 21 MW by Dec 2024, with long-term plans to scale up to 307 MW

    Partnerships: Empanelled by RailTel and TCIL, enabling delivery of managed services and potential MDC-scale deployments

    Market fit: Enterprise colocation, AI/ML, government-hosted apps, compliance-sensitive workloads

Anant Raj’s hybrid rollout strategy and modular delivery approach position it as an MDC-aligned player—well-suited for supporting India’s edge and localized digital infrastructure growth.

Future Micro Data Centre: What Lies Ahead (2025–2026)

Challenges Hindering MDC Adoption in India

Low Awareness & Adoption

Until 2023, only a few dozen true MDC deployments existed. Market education is still maturing.

High CapEx Requirements

Initial infrastructure and integration costs remain high—especially for SMEs and government bodies.

Talent Shortage

Maintaining distributed MDCs requires a trained local workforce, which is still nascent.

Fragmented Standards

Power supply, monitoring systems, and integration protocols often lack standardization—delaying scale.

India’s market is evolving quickly, but resolving these constraints is key for MDCs to reach full potential.

Outlook on edge micro data Centre

India’s micro data Centre market is at an inflection point—set to grow nearly 10X by 2033. MDCs are emerging as foundational enablers of edge computing, low-latency services, and localized AI across telecom, finance, manufacturing, and governance.

Backed by companies like Nxtra, TEECL, Netweb, STL, and global giants like Schneider, MDC deployments are extending India’s digital edge into Tier 2/3 cities and industrial zones.

As AI, 5G, and data localization intensify, micro data Centres will power the next wave of India’s digital economy—flexible, scalable, and closer to the user than ever before.

Domestic benchmark index NSE Nifty ended 319.16 points up at 25112.4, while the BSE Sensex closed 1046.3 points up at 82408.17.

On the other hand, Quality Power Electr, Prostarm Info System, Gallantt Metal, Gillanders Arbuthnot & Co and Indiabulls Enterprises stocks hit their fresh 52-week highs today.

In the Nifty 50 index, Jio Financial Services, Bharti Airtel, Trent, M&M and BEL were among the top gainers on the NSE in the today’s trade.

Meanwhile, Bajaj Auto, Hero MotoCorp, Maruti Suzuki, Dr. Reddys and ONGC were among the top losers of the day.

Last Updated on Jun 6, 2025 by Aishika Banerjee

Filing Income Tax Returns (ITR) is your federal duty if you earn an income in the financial year exceeding Rs. 2.5 lakh. When mutual fund tax filing your returns, you have to declare incomes earned from various sources. If you have made specific investments that earn you tax deductions from tax on mutual fund dividends or exemptions, the same should be declared in the ITR.

Mutual fund investments also give you tax benefits if you choose the ELSS schemes. Moreover, when you redeem your investment and gain profit or suffer a loss, the same should also be reported on your tax return. Let’s understand how to declare mutual fund investment in ITR and the mutual fund tax implications.

Declaring Tax-Eligible Mutual Fund Investment

Equity Linked Saving Schemes, or ELSS, are equity-oriented mutual fund schemes with a distinct tax advantage. Investment into these schemes allows you a deduction from your taxable income to the tune of Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961, that you may declare under the heading ‘Chapter VI A deductions’ in your ITR.

Declaring Capital Gains on Mutual Fund Redemption

Whenever you redeem your mutual fund investments, any profit or loss incurred is termed as capital gain or capital loss, respectively. The detail of such gains or losses should also be declared in your ITR for tax on mutual fund redemption.

However, before jumping on how to declare capital gains tax mutual funds, here’s a quick look at how the gains are taxed:

• In the case of equity mutual funds, gains earned within 12 mth are called short-term capital gains. Such gains are taxed at 15%. On the other hand, gains earned after 12 mth are long-term capital gains. Such gains are tax-free up to Rs. 1 lakh, and gains exceeding the limit are taxed @10%.
• In the case of debt mutual funds, gains earned within 36 mth are called short-term capital gains. They are taxed at your income tax slab rates. However, gains earned after 36 mth are called long-term capital gains. They are taxed at 20% with indexation, a process through which an asset’s acquisition cost is inflated/adjusted to bring it at par with current rates, taking inflation into account.

How to Declare Capital Gains from Mutual Funds?

Now that you know how mutual fund gains are taxed and filing ITR for capital gains, it’s time for step two, which is how to declare mutual fund investment in ITR.

Since mutual fund returns are called capital gains, they are recorded under the heading ‘Income from capital gains.’ You need to mention the amount of gain incurred and the respective tax liability and tax treatment for mutual funds. 

Similarly, losses on redemption should be declared as capital losses under the same heading. You can use the losses to set off the profits earned from other mutual fund investments.

When calculating the amount of capital gains, you can deduct the brokerage paid to your mutual fund distributor or broker, if any, from the gains incurred.

Setting off of Capital Loss from Gains on Redemption of the Fund

If you have incurred a capital loss in the financial year, then on redeeming your mutual fund investments, you can use the loss to offset the profits earned on another scheme. This set-off is allowed in the same financial year as well as for eight subsequent financial years. To offset your capital losses against gains and reduce your subsequent taxation on mutual funds, you should file your ITR with the income tax department within the due date. Failure to do so would not allow you to carry forward your losses for set-offs from future capital gains statement for ITR.

Here are the rules of setting off losses against gains:

• Short term capital loss can be set off against either short term or long term capital gains
• Long term capital loss can be set off only against long term capital gains

ITR Form 2

You would have to file your returns in ITR Form 2 if you have:

• Capital gains or losses from a mutual fund redemption
• You are a salaried taxpayer or a Hindu Undivided Family (HUF)

In this ITR form for mutual funds filing capital gains in ITR, the details of the capital gains or losses suffered would have to be mentioned.

Suppose you incur capital gains or losses from an equity mutual fund on which Securities Transaction Tax (STT) has been paid. Then, in that case, you need to mention the individual details of every mutual fund scheme redeemed. 

You will also need to fill out Schedule 112A for each scheme that you have redeemed in a financial year and on which you have earned a capital gain or loss.

Conclusion

If you have invested in tax-saving ELSS schemes, you may claim a tax deduction when you declare your investment in your mutual fund Income Tax Returns (ITR). Moreover, any gains or losses incurred on redeeming an existing mutual fund investment should also be declared in the ITR for filing tax on mutual fund dividends. Understand thoroughly how to declare mutual fund investment in ITR so that you can comply with the rules of filing ITR for mutual funds and avoid penalties. Also, file your return on time to fulfil your duty and carry forward your losses to subsequent financial years if you have any.

Content Writer at Tickertape

As a Content Writer at Tickertape, my writing style is both engaging and captivating. I take pride in my ability to craft compelling stories and informative content on recent developments in the financial world, which has earned me a dedicated following of readers. Beyond my professional pursuits, I am an avid reader and a true antiquarian, devoting my free time to exploring the world of literature.

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