# Sterlite Tech and HFCL Rally on Data-Centre Demand > Source: > Published: 2026-05-27 05:31:34.923508+00:00 # Sterlite Tech and HFCL Rally on Data-Centre Demand Economic Times reports that **Sterlite Technologies** has surged nearly **375%** year-to-date while **HFCL** has rallied about **135%**, driven by rising demand for optical-fibre and interconnect solutions tied to AI-focused data-centre buildouts. Economic Times cites a KPMG report projecting India's data-centre sector revenue will reach nearly **$45.69 billion** by 2033, a trend the article links to larger AI workloads, cloud adoption, and data-localisation rules. The piece notes hyperscalers are accelerating investments in AI-capable data centres and that unnamed market experts view the sharp share-price moves as backed by structural tailwinds including the global fibre buildout, BharatNet-related telecom capex, and rising high-density optical connectivity demand. ### What happened Economic Times reports that **Sterlite Technologies** has surged nearly **375%** year-to-date and **HFCL** has rallied about **135%** during the same period. Economic Times links the rallies to accelerating investments by hyperscalers in AI-focused data centres, creating higher demand for optical-fibre cables, interconnect solutions and related telecom infrastructure. Economic Times also cites a **KPMG** projection that India's data-centre sector revenue could reach nearly **$45.69 billion** by 2033, which the article describes as being driven by larger AI workloads, rising cloud adoption and data-localisation requirements. ### Editorial analysis - technical context Optical fibre and high-density interconnects are a core part of scaling modern AI training and inference environments because they carry the high-bandwidth, low-latency links needed for server-to-server and cross-rack traffic. Industry observers note that as model sizes and cluster scale increase, intra- and inter-data-centre connectivity needs grow faster than raw compute, increasing demand for fiber, transceivers and switching fabric hardware. ### Industry context Observed patterns in similar infrastructure-led rallies show that supply-side capacity, multi-year enterprise or hyperscaler contracts, and government-led broadband programmes can extend growth beyond a single earnings cycle. Economic Times frames the current moves in Indian markets as a convergence of global hyperscaler capex and domestic initiatives such as BharatNet, both cited in the article as contributing to demand for optical-network suppliers. ### What to watch - •Quarterly order intake and backlog disclosures from **Sterlite Technologies** and**HFCL**, as reported in company filings or quarterly results, to verify whether revenue growth is underpinned by firm contracts (reported fact to seek in filings). - •Pricing trends for optical-fibre and high-density optics, since margin pressure can arise if component supply outpaces demand (industry-pattern observation). - •Announcements from hyperscalers and large cloud providers about data-centre expansions in India or nearby regions, which Economic Times links to the rally. - •Any capital-expenditure or policy updates on BharatNet and data-localisation rules that could shift domestic telco spending, as noted by Economic Times. ### Bottom line Economic Times reports large YTD share gains for **Sterlite Technologies** and **HFCL** tied to AI-driven data-centre demand and cites a KPMG market projection. Industry patterns suggest such infrastructure booms depend on sustained order flow, pricing, and rollout timelines rather than short-term sentiment. ## Scoring Rationale The story matters to practitioners because hardware and networking supply affect where and how AI compute is deployed; it is notable but not frontier research. Infrastructure funding and capacity shifts are important but not industry-shaking. Practice interview problems based on real data 1,500+ SQL & Python problems across 15 industry datasets — the exact type of data you work with. [Try 250 free problems](/problems)