Anant Raj Jumps as Govt Plans 20-Year Tax Exemption for Data Centres

Anant Raj

shares rallied over 13% today, hitting fresh highs, after reports that the government may allow up to 20 years of tax exemption for data centre developers under the draft National Data Centre Policy. Key Highlights The proposed incentives include tax holiday + GST input tax credit on capital assets like construction & HVAC systems. Benefits will be linked to performance criteria such as capacity addition, energy efficiency, and job creation. Anant Raj, which has been expanding beyond real estate into digital infrastructure & data centres, stands out as a direct beneficiary. Stock surged ~13% to ~₹604, making it one of the top smallcap gainers of the day. Other data centre developers also saw investor interest amid hopes of a policy boost. However, experts like Shankar Sharma cautioned that data centres are capital-intensive with long gestation and high client bargaining power, comparing them to telecom towers. What to Watch Final draft of the policy — conditions around energy use & job creation could determine eligibility. Capex requirements vs. actual tax benefit: will the returns justify large upfront spends? Valuations — enthusiasm is running high, but execution risks remain. Bottom Line Policy tailwinds could give Anant Raj and other data-centre players a structural edge. But investors should weigh the long-term capex burden vs. near-term excitement, as the rally seems driven by hopes rather than immediate earnings.