Sify Betting Big On India, To Invest $5 Bn In Data Centres: Report

Sify Betting Big On India, To Invest $5 Bn In Data Centres: Report

SUMMARY

Sify plans to invest $5 Bn to expand data centres and build AI inferencing facilities across 20 tier-2 cities in India

The company will modernise internal systems with AI Ops, cloud platforms and GPUs to compete with large incumbents

The expansion aligns with India's AI mission, which has allocated INR 10,372 Cr for building AI infrastructure

Cloud infrastructure provider Sify Technologies is reportedly aiming to invest $5 Bn in India over a period of five years. The company will be using these funds to build smaller AI inferencing facilities in 20 tier-II cities.

Sify offers a comprehensive suite of services including telecom services, data centre services, cloud and managed services, and digital transformation solutions. It operates across more than 1,600 cities in India and runs 11 data centres.

As per ET’s report, citing Sify chairman and managing director Raju Vegesna, India is expected to be among the largest markets of AI services and inferencing rather than training. 

“We are going to invest in data centres not only in the 6-7 metros but in the next 10-20 tier-2/tier-3 cities like Lucknow, Chandigarh, Nagpur with small capacities of around 10 megawatts to create these AI factories,” Vegesna said.

This initiative comes on the premise that Special Economic Zones are moving to tier II cities. All IT resources and IT outsourcing companies are also expanding there. 

“We need to take the current IT resources to the next level with AI,” he added.

Sify Technologies is also looking to expand data centres, modernise internal systems with AI Ops, its cloud platforms and GPUs. With this it aims to compete with large data centre and telecom incumbents.  Last year, they announced GPU-as-a-service last year and are currently running several proof-of-concepts.

In September 2023, it raised INR 600 Cr from the Kotak Data Centre Fund. 

The company’s expansion aligns with India’s AI mission, launched in July 2023 with an INR 10,372 Cr allocation.

The government has earmarked INR 4,563 Cr for building compute capacity of 10,000 GPUs under this mission. Another INR 1,971 Cr has been set aside for the new IndiaAI Innovation Centre.

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Sify Betting Big On India, To Invest $5 Bn In Data Centres: Report-Inc42 Media
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