In a significant move that underscores India’s growing digital infrastructure needs, Sify Technologies has announced plans to invest ₹3,000 crore over the next five years to expand its data centre operations. The company aims to more than triple its current capacity of 100 Mw to 350 Mw, positioning itself as a major player in India’s rapidly evolving digital landscape.
The expansion initiative includes three greenfield data centre projects currently under construction, with a combined design capacity of approximately 200 Mw. The first facility, boasting 38 Mw capacity, is scheduled to begin operations in October 2024, while two additional centers in Noida and Chennai, each with 80 Mw capacity, are expected to go live by the end of the current financial year.
M P Vijay Kumar, Executive Director and Group CFO of Sify, emphasized the strategic importance of data localization in driving this expansion. “There is no point for content which is consumed in India to get hosted somewhere else where it goes all the way and comes back every time. The data should be localised,” he stated, highlighting the company’s commitment to improving data accessibility and efficiency.
The investment comes at a crucial time for India’s data centre market, which is experiencing unprecedented growth. According to Nasscom, global data centre market investments are projected to reach $200 billion annually by 2025, with India expected to attract approximately $5 billion per year in investments by 2026. This surge in investment reflects the increasing demand for cloud services and digital infrastructure across the country.
Sify’s current operations span six major cities, including Mumbai, NCR, Kolkata, Hyderabad, Chennai, and Bengaluru. The company’s client base is strategically divided, with two-thirds of its capacity serving hyperscalers and the remaining third dedicated to enterprise clients. The BFSI sector leads the demand for Sify’s services, followed by e-commerce, media & entertainment, manufacturing, and retail sectors.
For Tamil Nadu’s startup ecosystem, Sify’s expansion represents a significant boost to the state’s digital infrastructure. The new Chennai facility will enhance the region’s data handling capabilities, potentially attracting more technology startups and encouraging existing ones to scale their operations. This investment aligns with Tamil Nadu’s vision to become a leading hub for digital innovation and entrepreneurship.
The company has shown strong financial performance to support its ambitious expansion plans. As of March 31, Sify reported revenue of ₹3,340.40 crore, marking a 24% increase from the previous year. The revenue distribution showcases a balanced portfolio, with data centre colocation services and digital services each contributing 30%, while network services account for 40% of total revenue.
Sify’s evolution from India’s first internet service provider in 1998 to a comprehensive enterprise IT infrastructure company demonstrates its adaptability in the tech sector. Today, it competes with major players like NTT Global, CtrlS, STT Global Data Centres, and Nxtra by Airtel in the Indian market, each operating significant data centre capacities across multiple cities.
The expansion initiative is expected to create numerous job opportunities in the technology sector and strengthen India’s position as a global digital hub. With data localization becoming increasingly important for businesses and government operations, Sify’s investment represents a crucial step in building robust digital infrastructure to support India’s growing digital economy.
