Forget power: The unquenchable AI thirst propelling water stocks up to 45%

Water infrastructure stocks including Shakti Pumps, VA Tech Wabag, Jash Engineering, Enviro Infra and Ion Exchange have rallied up to 45% in a month on the back of rising AI and data centre water demand combined with strong government spending on water projects under the Jal Jeevan Mission. Moody's has flagged rising water stress from data centres, but analysts say companies in wastewater treatment, recycling and pumping stand to benefit from a structural shift toward water efficiency and reuse. VA Tech Wabag reported a 22% rise in Q4 revenue and a 29% increase in profit, though valuations at around 25-35x P/E are above the broader market and reflect optimism ahead of actual data centre-linked revenues.