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Sify said it currently has 188 MW of designed capacity and 134 MW of operational, revenue-generating capacity
In sum – what to know:
Capacity expansion – Sify plans to deliver 100 MW of additional data center capacity this fiscal year while increasing capital expenditure to support customer deployments.
Edge growth – The Indian company plans to expand into tier 2 and tier 3 cities, targeting 10–12 edge data centers over the next several years.
Integrated portfolio – Sify says its combination of data centers, network infrastructure, and cable landing stations helps differentiate it in India’s digital infrastructure market.
Indian company Sify Technologies is accelerating investment in its data center business, with plans to deliver 100 MW of additional capacity during the current fiscal year as demand for AI, cloud, and data-intensive workloads continues to grow.
Speaking during the company’s quarterly earnings call, Sify’s management said it continues to invest in capacity expansion, network modernization, and technology platforms to address emerging demand while maintaining a disciplined approach to capital allocation.
“Our integrated portfolio of data centers, network, and digital services enables us to support customers as they modernize their technology environments and prepare for an AI-enabled future,” chairman Raju Vegesna said.
During the last quarter, Sify sold 5 MW of data center capacity. Executive director and M.P. Vijay Kumar said the company currently has 188 MW of designed capacity and 134 MW of operational, revenue-generating capacity. He added that Sify expects to deliver about 100 MW of additional capacity during the current fiscal year, while another 150 MW is under construction.
Management also indicated that capital expenditure will increase during the remainder of the fiscal year as those projects progress. “The capex is likely to be higher for the remaining part of this year as we get ready to deliver capacity for the customers,” Vijay Kumar said.
Vegesna also said that Sify has operations across India’s key data center markets, including Mumbai, Chennai, Noida, Hyderabad, Bangalore and Kolkata.
Alongside hyperscale expansion, Sify is also growing its edge data center footprint. Vegesna said the company has already completed two edge data centers in Lucknow and Chandigarh, while two additional facilities are under construction. Over the next several years, Sify plans to build 10 to 12 edge data centers across India’s tier 2 and tier 3 cities.
Management also said the company’s digital services business is transitioning from project-based work toward a more recurring services model. While revenue growth in that segment may remain modest, the company said its objective is to move the business toward Ebitda breakeven, with quarter-over-quarter reductions in losses already becoming visible.
Looking ahead, Sify said it will continue investing in infrastructure to support long-term demand while preparing additional capacity for customers as AI adoption and digital transformation continue across India.
The Chennai-based firm is one of India’s largest integrated information and communications technology providers, offering enterprise services across data centers, network connectivity, cloud, managed services, and digital transformation.
