Sify Technologies is growing its data centre services capacity as India Inc embarks on digitisation and the application of Artificial Intelligence to business.
The move is driven by the exponential growth of data generated by Indian businesses as they embrace digitisation and leverage Artificial Intelligence (AI) for their operations.
Currently, Sify offers data centre colocation, network, and security services through 11 facilities located in Chennai, Mumbai, Noida, Bengaluru, Hyderabad, and Kolkata, with a total capacity of approximately 100 MW.
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However, in response to the increasing demand, the company has outlined plans to add around 350 MW of capacity in the coming years.
Sify has committed a capital expenditure of approximately 3,000 crores (404 million US dollars) over the next two years for the expansion of its data centre and network services, with 1,322 crores (178 million US dollars (USD) )allocated for the fiscal year 2023.
MP Vijay Kumar, Executive Director and Group CFO, Sify, told TOI: “We have committed plans on the ground for around 200 MW of design capacity, about 50 MW of which will become operational this financial year and the balance in following periods,”.
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Besides this, there are three greenfield data centre projects currently at the design stage for Sify that will add another 110 MW of capacity. “The land acquisition for these is done,” he added
In Chennai, Sify already operates the ‘Chennai 1’ data centre at Tidel Park, with a capacity of around 4 MW, and another facility is under construction at Siruseri.
Sify’s extensive network of Points of Presence (PoPs), which function as mini data centres, covers key cities.
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The company aims to meet the data traffic requirements in tier 2/3 cities by scaling up the PoP capacity from the current range of 2-3 MW to handle up to 5 MW.
In terms of financial performance, Sify reported consolidated revenue of 3,340 crores (450 million US dollars (USD) and profits of 67 crores (9 Million US dollars) for the fiscal year ending in March 2023.
During the January-March 2023 period, several notable companies, including India’s largest private bank, a state data centre, a cooperative bank, a major health services provider, and multiple financial services players, migrated their on-premise data centres to Sify’s cloud platforms.
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Additionally, Sify secured contracts for network integration services from an automobile major, a manufacturing giant, and a public sector bank.
According to Kumar, there is substantial demand from hyperscalers for data centre capacity following the pandemic “Post the pandemic, there is a substantial demand from hyperscalers for capacity, and this is expected to grow at the current pace for the next 10 years at least”
Furthermore, India’s own digital transformation, be it in government, BFSI (banking, financial services, and insurance), or retail sectors, has also contributed to the increased demand for digital infrastructure providers like Sify.
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Kumar emphasized that the data centre expansion is being planned with sustainability in mind.
While Sify has made progress in adopting renewable energy strategies, such as a combination of solar and wind power, in its Mumbai data centres, efforts are underway to power its other centres with renewable energy sources as well.
