Sify Data Center Unit Plans $500M IPO Amid Rising Demand for AI-Fueled Services

Sify Technologies' data-center unit, Sify Infinit Spaces, is planning a $500 million IPO, filing a draft red herring prospectus with the Securities and Exchange Board of India in the coming weeks. The unit, backed by Kotak Private Equity Group, is considering the sale of new and existing shares for the offering, valuing it at around $3 billion. The IPO will tap into the growing demand for data centers in India, which is expected to see a 77% capacity growth to 1.8 gigawatts in the next four years.

Sify Technologies Ltd.'s data-center unit, Sify Infinit Spaces Ltd., is preparing to file a preliminary offering with the Securities and Exchange Board of India (SEBI), potentially raising $500 million. The company, backed by Kotak Private Equity Group, plans to submit a draft red herring prospectus in the coming weeks, valuing the unit at approximately $3 billion [3].

The IPO comes amidst a surge in demand for data centers in India, driven by the expansion of artificial intelligence and the need for faster, more accessible digital services. According to a 2025 report by property consultant JLL, India's data center capacity is expected to grow by 77% to 1.8 gigawatts in the next four years [4]. Sify Infinit, a pioneer in the Indian data center industry, currently operates 14 data centers across the country, offering about 188 megawatts of power [3].

Sify Infinit has previously raised 16 billion rupees through compulsory convertible debentures from Kotak's Special Situations Fund and Kotak Data Center Fund. The company's IPO will involve the sale of new and existing shares, with Kotak Mahindra Capital Co., Morgan Stanley, JPMorgan Chase & Co., Citic Securities Co., and JM Financial Ltd. acting as bookrunners [3].

The decentralization of data centers into Tier II and Tier III cities is a significant trend reshaping India's digital landscape. This shift is driven by the increasing demand for faster, more accessible digital services, the rapid growth of Edge computing, and government policies supporting nationwide digital infrastructure development. Expanding data centers into smaller cities helps tackle critical digital needs and ensures seamless connectivity [4].

The IPO filing by Sify Infinit Spaces Ltd. is a strategic move to capitalize on the growing demand for data centers and to position the company as a key player in India's burgeoning tech ecosystem.

References:
[1] https://timesofindia.indiatimes.com/city/vijayawada/5-it-firms-get-land-in-vizag-pledge-19k-cr-investment/articleshow/123100714.cms
[2] https://www.ainvest.com/news/figure-technology-files-ipo-crypto-firms-pursue-public-market-access-2508/
[3] https://www.bloomberg.com/news/articles/2025-08-06/sify-s-data-center-unit-is-said-to-plan-500-million-india-ipo
[4] https://www.datacenterdynamics.com/en/opinions/beyond-metros-how-indias-tier-ii-and-tier-iii-cities-are-reshaping-the-data-center-landscape/