Sterlite Technologies stock zooms ~6% on AI Data center push

16 Oct 2024 , 04:16 PM

Sterlite Technologies’ shares rose 6% to Rs 128 in the afternoon of October 16 after the business demonstrated its latest AI-driven data centre solutions at the India Mobile Congress 2024.

The telecom company has launched a portfolio of optical fibre devices to assist the rapid growth of AI infrastructure in data centres, which demand increased fibre density as they transition to GPU-based servers.

While artificial intelligence models are at the forefront, the backend infrastructure—AI-led data centres—is based on optical fibre communication. As data centres shift to GPU-based servers, the need for fibre optic infrastructure between and inside the data centres may skyrocket.

India has developed as a significant hub for data centre ecosystems. According to early predictions, the country’s GPU-based server capacity in AI-driven data centres would reach about 5.2 lakh by 2026. Due to increasing server density and bandwidth demands, these GPU-intensive data centres will require 36 times more fibre than standard CPU racks.

According to management, the company’s IBR (Intelligently Bonded Ribbon) cabling technology sets the standard for fibre densification and will serve as the foundation of AI data centre networking. 

At around closing, Sterlite Technologies was trading 2.09% higher at ₹123.70, against the previous close of ₹121.17 on NSE. The counter touched an intraday high and low of ₹128.30, and ₹120.70, respectively.

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