Blue Cloud shares rise 18% on plan to invest in data centre capacity

Shares rise in trade.

• Blue Cloud shares rose 18% after announcing a $1B AI investment.
• Company plans up to 800 MW of AI-native data centre capacity, starting FY26.
• New data centres will support high-density AI compute and next-gen GPU racks.

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Blue Cloud shares rose nearly 18 percent on Monday after the software products company announced plans to invest up to USD 1 billion in a phased manner to develop AI-native data centre and digital cloud infrastructure across India.

The stock opened higher by 6.35 percent and later touched an intraday high of Rs 21.30 per share on the BSE, marking a gain of 17.68 percent. The rally came after the stock had declined for three consecutive sessions.

In an exchange filing, the company said it plans to create up to 800 MW of data centre capacity over multiple phases, with the first phase expected to begin in FY26.

The first phase is expected to commence within FY 2026, subject to regulatory approvals, with scalable expansion toward 800 MW over the long term, aligned with demand growth, the company said in a release.

Announcing the initiative, Blue Cloud Chairman Janaki Yarlagadda said the long-term investment plan reflects the company’s commitment to building intelligent and future-ready digital infrastructure in the country.

The company's high-density AI compute design include support for next-generation GPU, TPU, and AI accelerator racks with power densities exceeding 80–120 kW per rack, compared to the 8–15 kW industry average in India, the company said.

The company said its focus areas include development of hyperscale, edge and AI-optimised data centres across major metros and emerging technology corridors, deployment of AI-native cloud platforms and setting up high-density high performance computing and GPU clusters.

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