GenAI meets capex: Telco data centers as the next earnings driver
In Q2 2025, 87% of total smartphones shipped in India were 5G-enabled (IDC), a notable increase from 79% the previous year. The pan-India rollout of fixed wireless access services and the rising adoption of home broadband connections contributed to a 20–30% growth in data traffic for telcos during FY25.
The rise of Generative AI (GenAI) has also emerged as a new driver for data traffic, computing, and storage infrastructure. Telco-operated data centers integrated with core networks are becoming an important theme.
