Data Centres See Increased Demand Thanks to AI and IoT, Says MP Vijay Kumar

By Sunil Sonkar
2 Min Read
Data Centres See Increased Demand Thanks to AI and IoT, Says MP Vijay Kumar

Data centres in India are in good demand and it is largely due to advancements in artificial intelligence (AI) and the Internet of Things (IoT). One of the key players in the sector is Sify Technologies. It is capitalizing on the trend. Its existing footprint is nearly 100 MW across 12 data centres in six Indian cities. It is now on a mission to expand capacity.


Sify’s executive-director & Group CFO MP Vijay Kumar shared some insights into the company’s expansion plans lately. Sify has invested about Rs 1,300 crore in the period of past two years and it was mainly in the development of data centres across India. It is committed to a three-phased investment plan totaling Rs 9,000 crore in next six years.

The first phase of investment is currently underway and it involves an investment of Rs 3,000 crore in Chennai, Mumbai, Noida and Bengaluru. Expansion at its Rabale, Mumbai campus, is on the card and it will add 38 MW of capacity. It will launch two more data centres and each is to support up to 86 MW. The second phase will see Rs 3,000 crore investment in 2025 and it will add 100 MW over the period of three years. The final phase will commence after 2026 with an additional Rs 3,000 crore investment.

Several factors are driving increased demand for data centres. AI, machine learning (ML) and IoT are the major contributors. IoT devices generate vast amounts of data. AI and ML algorithms require substantial computational power. Moreover, adoption of cloud services, growing consumption of OTT and digital content, and spread of 5G technology are fueling the demand.

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