The International Finance Corporation (IFC) has announced a partnership with Sify Infinit Spaces Limited (SISL), a subsidiary of Sify Technologies Limited, to support the expansion of AI-ready and energy-efficient data center infrastructure in India. The sustainability-linked investment will help finance the development of two next-generation data centers in Navi Mumbai and Chennai with a combined capacity of 103 megawatts. The project is expected to support growing demand for cloud computing, artificial intelligence, and digital services while creating employment opportunities and stimulating local economic activity.
The new facilities will be developed according to Indian Green Building Council (IGBC) Platinum standards and will provide secure, reliable, and energy-efficient digital infrastructure for sectors such as banking, media, e-commerce, and technology. By incorporating advanced cooling systems and renewable energy solutions, the project aims to set new benchmarks for sustainable data center development in India while supporting the country’s rapidly expanding digital ecosystem.
India has emerged as one of the world’s fastest-growing digital economies, driven by rising internet usage, widespread mobile connectivity, increasing cloud adoption, expanding AI applications, and the rollout of 5G networks. These trends are generating unprecedented demand for data center capacity, making investments in modern and resilient digital infrastructure increasingly important for economic growth, innovation, and competitiveness.
The investment aligns with the World Bank Group’s development priorities in India, which focus on strengthening infrastructure, enhancing productivity, and supporting digital transformation. IFC’s financing is being coordinated with broader initiatives aimed at advancing digital and AI ecosystems, promoting knowledge sharing, building institutional capacity, and attracting private investment into strategic infrastructure sectors.
The total financing package amounts to approximately $371 million. IFC will provide a direct loan of $71 million, equivalent to around ₹675 crore, while also working to mobilize up to $300 million in additional debt financing to support SISL’s expansion plans. The financing structure is designed to attract long-term private capital into India’s growing digital infrastructure market.
The investment comes at a time when India’s digital infrastructure requirements are expanding rapidly. The country’s active internet user base has surpassed one billion, while mobile broadband subscriptions continue to grow. Industry projections suggest that India’s data center capacity could increase significantly by 2030 as demand from cloud services, AI workloads, digital commerce, and connected technologies accelerates. AI alone is expected to contribute hundreds of billions of dollars to the Indian economy over the coming years, further increasing the need for advanced digital infrastructure.
The partnership reflects growing recognition of data centers as critical infrastructure supporting businesses, public services, innovation, and economic development. As demand for digital services continues to rise, investments in sustainable and energy-efficient facilities will play an increasingly important role in ensuring reliable digital connectivity while supporting environmental objectives.
By supporting the development of AI-ready data centers, IFC aims to strengthen India’s digital foundation, enhance access to advanced technology infrastructure, mobilize private sector investment, create jobs, and contribute to a more resilient and competitive economy. The project also highlights the increasing importance of sustainability in the digital infrastructure sector, where energy efficiency and renewable energy integration are becoming essential components of long-term growth strategies.
