AI driven data centers propel HFCL and Sterlite fiber demand
Indian companies HFCL and Sterlite Technologies are seeing a big boost as global demand for fiber optics takes off, thanks to the explosion of AI and new data centers in the US and Europe.
Data centers alone could account for 30% to 35% of global fiber demand over the next couple of years.
HFCL sends more than 70% of its cables abroad, mostly to the US while Sterlite is also getting a lift from international projects and home internet upgrades.
HFCL 700-800cr capacity, Sterlite 500cr investments
To keep up, both companies are investing heavily: HFCL is putting in ₹700 to ₹800 crore over three years to grow its production capacity, while Sterlite is spending ₹500 crore this year across India and the US.
They're also branching out into smarter solutions for connecting data centers, especially as India's own AI scene grows with players like Reliance Industries (via Jio) and Bharti Airtel (through Nxtra).
Plus, they're eyeing new markets to keep the momentum going.
Fiber optics are basically powering everything fast online right now, and these two are making sure they're at the center of it all.