India’s datacenter demand is accelerating as AI workloads and higher-density computing reshape infrastructure requirements. Sify Infinit Spaces is expanding its footprint with new capacity focused on AI-ready and edge infrastructure. In this exclusive conversation with DT, Sharad Agarwal, CEO, Sify Infinit Spaces Limited, discusses expansion, AI infrastructure, power, sustainability and market demand.
Q: What is your current capacity and expansion roadmap till 2030?
A: As of March 2026, we have a built IT capacity of 190+ MW across 14 operational data centers located in six major cities in India, including Mumbai, Chennai, Bengaluru and other major cities. Looking ahead, we are planning to expand our capacity to meet India’s growing data center demand, which is projected to grow from 1.3 GW in 2025 to between 4.7 GW and 5.7 GW by 2030. We are developing 11 new data centers in strategic locations. These developments will enable us to cater to the increasing demand for AI-ready infrastructure and edge data centers, ensuring the company remains at the forefront of India’s digital transformation.
Q: How are you designing AI-first data centers vs traditional ones?
A: In the recent times, enterprises are shifting from captive server rooms to colocation and hybrid models, with the colo versus captive data center capacity split projected to move from 60:40 to 70:30 in the next five years. AI adoption is accelerating this shift, as traditional setups lack the power and cooling required for AI workloads. At Sify, we are scaling AI-ready capacity by incorporating liquid cooling technologies such as closed loop cooling, direct-to-chip and immersion cooling, greater fibre density, zonal architecture, and modular designs that enable efficient workload segregation and improved energy efficiency. Our AI-optimized data center facilities at Rabale, Noida, and Chennai have been purpose-built to support next-generation AI infrastructure and attract high-value AI workloads.
Q: What are your biggest challenges: power, land, or funding?
A: All three matter, but each plays a different role in our growth story. On power, electricity is our single largest operating cost. For instance, electricity made up roughly 43% of our colocation expenses in FY2025. Approximately 60% of our power capacity utilized at our largest campus was generated from renewable sources. On land, while we have successfully secured land for a couple of our Edge data centers, strengthening our presence in emerging regional markets. Funding is not as much concern as with any emerging market, the funds inflow into DC have been more than encouraging. Recently Sify has received a funding of $71 million from IFC to promote the development of AI ready, energy-efficient data center infrastructure in India.
Q: How are you balancing growth with sustainability goals?
A: Sustainability is integrated into our growth strategy rather than treated as a separate initiative. We have entered into Power Purchase Agreements (PPAs) to secure renewable energy as part of our sustainability and energy optimization strategy. Data centers are increasingly adopting renewable energy sources like solar, wind, and bioenergy through Power Purchase Agreements (PPAs). We have contracted 309.60-megawatt peak of renewable power. Overall, we are at a little more than 38% of renewable power absorption across all 14 data centers while our largest campus now operates with close to 60% renewable power. We are also actively working toward its long-term goal of achieving net-zero operations.
Q: Are we heading towards overcapacity or is demand still under-served?
A: We believe the Indian market remains significantly under-served rather than facing overcapacity. India is already positioning itself as a global hotspot for data center investments, with demand projected to grow from 1.3 GW in Fiscal 2025 to 4.7–5.7 GW by Fiscal 2030. This number is bound to increase by atleast 40% with the advent of AI workloads. Global hyperscalers have expanded self-built infrastructure in India, reflecting trust in the ecosystem. As enterprises increasingly adopt AI and move towards higher-density computing, demand is expected to remain broad-based across hyperscalers, cloud providers, and enterprise customers.
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