Sify and partners to invest Rs 10,000 crores in Chennai DC over next five years: MP Vijaykumar

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By Deborah Grey
As w.media's Global Editor-in-Chief, Grey covers the cloud and data center industry and connectivity ecosystem across APAC and EMEA. In a career spanning over two decades, Grey has dabbled in television, print and online journalism, covering a variety of beats including human rights, health, environment, politics, business and economy.

Sify Infinit Spaces Ltd., a prominent Indian data center provider, and a wholly owned subsidiary of Nasdaq listed Sify Technologies Ltd., recently announced the inauguration of an AI-ready data center campus in Chennai which will have an eventual capacity of 130 MW. Located in the upcoming technology hub of Siruseri, the facility was inaugurated by Tamil Nadu Chief Minister Thiru M. K. Stalin, Chennai 02 also has an on-site open cable landing station.

To discuss this project further, as well as future investments into digital infrastructure in the region W.Media spoke to MP Vijaykumar, Executive Director and Group CFO, Sify Technologies.

Could you take us through your thought process while envisioning, and designing such a huge AI-ready facility?

MP Vijaykumar: We were the pioneers of the data center business when we started India’s first data center in Vashi in the year 2000. To date, we have 14 facilities across India and 188 MW of IT power on demand. One look at our trajectory, and you will notice that our data centers have evolved from infrastructure edifices in the early stages to hyperscale facilities and, very recently, AI-ready facilities. To put it simply, our DCs have evolved more with the demands from the market and were not necessarily time dictated.

AI applications are both, power and platform-hungry. With the world looking to AI-driven applications to take center stage, we chose to build the appropriate platforms to ensure that any AI-driven application will have a ready platform to scale.

What kind of investment has been planned for this project, and could you take us through phase wise growth plans?

MP Vijaykumar: The Chennai 02 Data Center is part of Sify’s larger ambition for Chennai, one of two cities that has the dual benefit of a submarine landing shore. Hence, a good part of our investments is concentrated in Chennai, Mumbai, and Noida.

In Chennai 02, Sify, with our partners, foresees a planned investment of ₹10,000 crore over the next five years. The facility launched is the first of three towers on the campus, with this initial phase developed at a cost of ₹1,882 crore. We began with an overall commitment of ₹2,500 crore, but with the growing demand for AI workloads, the plan has expanded. Over time, the campus will see continued investments from Sify and its partners—including hyperscalers, enterprise clients, and public sector companies—to build a complete AI-ready digital ecosystem.

AI workloads are known to generate heat at a record rate. What kind of cooling mix do you have in mind for this facility?

MP Vijaykumar: Sify’s new Hyperscale Data Center campus in Siruseri, Chennai, is designed to support AI workloads and features advanced cooling systems. This facility is built for liquid cooling, allowing for high-density computing and accommodating workloads up to 200 kW per rack. Additionally, we have implemented a patent-pending heat exchanger system for the AI capacity racks.

Are you planning to use any renewable energy sources? How do you plan to maximise energy efficiency and achieve sustainability goals in this project?

MP Vijaykumar: Approximately 60 percent of our power requirements are currently met through renewable energy sources, in partnership with providers like Sunsure Energy and Vibrant Energy. Looking ahead, we aim to increase this share to 80–90 percent in the coming years. In line with our long-term environmental vision, we are committed to powering the Siruseri Data Center entirely with renewable energy. Additionally, the facility will be managed using sustainable building management practices, positioning it as a benchmark for eco-conscious digital infrastructure in the region.

Connectivity clearly is one of your biggest priorities, but how did you come about getting a cable landing facility at this site? 

MP Vijaykumar: This will be our second facility. Our first OCLS is in Mumbai. But Chennai, with its growing cable landing population and our growing international clientele, deserved its own. Hence this second facility.

On the domestic connectivity front, our network is now available in 1,700 towns and cities. But importantly, it now connects 73 data centers—excluding our 14, that’s 59 data centers of the competition. That’s the best endorsement of our network connectivity.

Felicitation of CM MK Stalin by Raju Vegesna, Chairman of Sify Technologies at the inauguration of Chennai 02 Data Center | Image courtesy: Sify
What made you choose Chennai for this facility?

MP Vijaykumar: Chennai was a strategic choice for our AI-ready Data Center due to its coastal advantage, mature digital ecosystem, and strategic connectivity. As the second-largest city in India in terms of operational data center capacity, Chennai plays a pivotal role in the country’s digital infrastructure. Our Chennai 02 facility alone adds over 130 MW to this capacity. Its proximity to multiple undersea cable landing stations ensures low latency and high-speed data transfers, making it ideal for AI and cloud applications. With strong industry presence and increasing digital demand, Chennai offers the reliability, scalability, and performance needed to support next-generation technologies and global data traffic.

Could you share some of your future plans? What else can we expect to see in 2025?

MP Vijaykumar: In 2025, we’re placing AI at the core of our growth strategy, integrating it across all three of our key verticals—network infrastructure, data centers and colocation, and digital services. We’re projecting revenue to grow from the current ₹4,000+ crores to ₹20,000–₹25,000 crores in the coming years. Backing this vision, we’ve laid out a $5 billion investment roadmap over the next five years focused on data centers—both major hubs and smaller facilities—network expansion, cloud platforms, and GPUs. We’ll also expand into tier-2 and tier-3 cities, building 4–5 smaller data centers annually, with AI inference facilities planned in locations like Lucknow, Chandigarh, and Nagpur.

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