Shares of Sterlite Technologies surged 6 percent to Rs 128 in the afternoon on October 16 after the company showcased its latest AI-driven data centre solutions at the India Mobile Congress 2024.
The telecom firm launched a portfolio of optical fibre products to support the rapid growth of AI infrastructure in data centres, which require greater fibre density as they shift to GPU-based servers.
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While artificial intelligence models are at the front end, the backend infrastructure— the AI-led data centres—rides on optical fibre connectivity. As data centres transition to GPU-based servers, the demand for fibre optic infrastructure between and inside the data centres could surge dramatically.
India has emerged as a major hub for data centre ecosystems. Early estimates suggest that by 2026, the country will increase its GPU-based server capacity in AI-driven data centres to nearly 5.2 lakh GPUs. These GPU-intensive data centres will need 36 times more fibre than traditional CPU racks due to higher server density and increased bandwidth demands.
The management stated that the company's IBR (Intelligently Bonded Ribbon) cabling technology sets the benchmark for fibre densification and will serve as the backbone of AI data centre connectivity. "Our expertise in IBR technology, combined with our optical connectivity solutions, puts us in a strong position to develop and commercialise this portfolio," he added.
At about 12:25 pm, shares of the company were trading at Rs 126, higher by 4 percent from the last close on the NSE. Sterlite Tech shares have tanked 15 percent in the last three months.
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