SynopsisAdani Power shares are climbing on strong prospects for India's power demand and the booming data centre sector. Analysts see the Adani Group well-positioned to capitalize on this growth. India's data centre industry is expected to expand rapidly. Rising electricity demand, driven by heatwaves and digital infrastructure needs, supports this outlook. Further upside is anticipated for Adani Power.ETMarkets.comBernstein believes the Indian market is increasingly shaped by a simple equation: land and power availability, and it sees Adani Group with an advantage at that juncture. Shares of Adani Power rose as much as 3% to their day's high of Rs 236 on the BSE on Friday, snapping a two-day losing streak. The stock has been one of the market's standout performers in recent months, surging 62% over the past six months and over 100% in 1 year amid growing optimism around India's power demand outlook and the emerging data centre opportunity.A recent report by Bernstein has further strengthened that narrative. The brokerage identified Adani Green Energy and Adani Power as companies with an unmatched ability to supply power to data centres, a segment expected to see explosive growth in the coming years. According to Bernstein, the Adani Group's combination of land availability, transmission connectivity, merchant power capacity and access to thermal equipment gives it a distinct edge in catering to future data centre demand.The brokerage believes India's data centre industry could expand faster than previously anticipated. Installed capacity, currently around 1.5 GW, could reach the upper end of the projected 5-8 GW range by 2030, driven by rising digital infrastructure requirements and increasing global interest in India as a data centre destination.Industry discussions cited by Bernstein suggest that the ongoing Middle East crisis is accelerating interest in India's data centre ecosystem. As developers and investors evaluate expansion opportunities, access to land and power infrastructure is emerging as the defining factor for future growth.The scramble for these resources is already visible. Bernstein noted that competition for land in Navi Mumbai has intensified sharply, pushing transaction values beyond earlier benchmarks. At the same time, access to substations and power connectivity has become increasingly critical as developers race to secure capacity for upcoming projects. The brokerage estimates that data centre construction costs in India, excluding compute infrastructure, are around Rs 50 crore per MW, lower than comparable costs in the United States.Against this backdrop, Bernstein believes the Indian market is increasingly being shaped by a simple equation: land and power availability. Viewed through that lens, the brokerage sees the Adani Group enjoying a significant advantage, backed by its position as India's largest renewable energy producer, private thermal power operator and transmission player, along with a land bank of more than 1,000 acres in Panvel.Supporting the broader investment case is India's soaring electricity demand. The country is currently grappling with heatwave conditions during an exceptionally strong El Niño year. The intensity of the heat has also been reflected in global temperature rankings. As of May 22, live data showed that 97 of the world's 100 hottest cities were in India, with the remaining three located in Nepal.Despite the sharp rally in the stock, another foreign brokerage, Jefferies, believes there is still room for further upside. The brokerage has raised its target price on Adani Power to Rs 255 from Rs 185, rolling over to 20x FY28 estimated earnings, citing rising power demand and healthy growth prospects over the next three to four years.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) 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