IFC backs Sify’s AI-ready data centre expansion with $371 million sustainability-linked financing package

International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, has partnered with Sify Infinit Spaces Ltd (SISL) to support the expansion of AI-ready and energy-efficient data centre infrastructure in India through a sustainability-linked financing package worth $371 million.

The funding will enable SISL, a wholly owned subsidiary of Sify Technologies, to develop two next-generation data centres in Navi Mumbai and Chennai with a combined capacity of 103 MW. The facilities are being designed to cater to growing demand from cloud computing, artificial intelligence (AI), digital commerce and enterprise workloads while strengthening India’s digital infrastructure ecosystem.

“India’s digital transformation requires infrastructure that is equally scalable, resilient, and sustainable,” said Vikram Kumar, Regional Industry Director, Infrastructure and Natural Resources, Asia and Pacific, IFC.

Financing package to support expansion

The total financing package comprises IFC’s direct loan investment of $71 million (around ₹675 crore), along with efforts to mobilise up to $300 million in additional debt financing for the company’s expansion plans. The project aligns with IFC’s broader strategy of supporting sustainable infrastructure and private-sector participation in high-growth sectors.

The two facilities will be built in accordance with Indian Green Building Council (IGBC) Platinum standards and are expected to incorporate advanced cooling technologies and renewable energy integration to improve operational efficiency and reduce environmental impact.

According to IFC, the investment is aligned with the World Bank Group’s Country Partnership Framework for India, which prioritises resilient infrastructure development and productivity enhancement. The project is also expected to create employment opportunities and generate economic activity in the regions where the facilities are being developed.

Ganesh Sankararaman, Chief Financial Officer of Sify Infinit Spaces, said the partnership strengthens the company’s long-term growth strategy and supports its ambition of becoming a leading digital infrastructure provider in India.

India’s data centre demand gathers pace

India’s rapidly expanding digital economy continues to drive demand for data centre capacity. The country accounts for nearly 20% of global data consumption and has more than one billion internet users and mobile broadband subscribers. Industry estimates suggest India’s data centre capacity could expand from around 1,500 MW currently to as much as 9,000 MW by 2030.

The rise of AI applications, cloud adoption, digital financial services and increasing 5G penetration is expected to further accelerate demand for digital infrastructure. AI alone could contribute up to $500 billion to India’s economy by 2030, creating significant requirements for computing power, storage and networking infrastructure.