Why Sify’s USD 500 million data centre IPO matters for Indian B2B

Sify Infinit, the data centre subsidiary of Sify Technologies, plans to file for a USD 500 million initial public offering (IPO), making the firm the first pure-play Indian data centre operator to list on domestic stock exchanges.

The proposed IPO, which the company's board approved on 25 September 2025, is expected to include both new and existing shares. A consortium of prominent financial institutions, including Morgan Stanley, JPMorgan Chase & Co., Kotak Mahindra Capital Co., Citic Securities Co., and JM Financial Ltd., is acting as bookrunners for the offering. This high-profile management team signals the offering's scale and international relevance.

Tapping the trillion-rupee infrastructure need

The primary driver behind this offering is the surging demand for digital infrastructure in India. Industry estimates from rating agency ICRA project that the country’s data centre demand will more than double over the next three years, requiring an investment of approximately Rs. 90,000 crore to meet the necessary expansion.

Sify Infinit, an early mover in this sector, commissioned its first data centre in 2000 and currently operates 14 sites across India. The company offers a power capacity of over 188 megawatts (MW) and controls approximately 19% of India's server capacity. The capital raised through the IPO is expected to directly fund expansion plans, including the development of new facilities and investments in cutting-edge, AI-ready colocation services. Sify has already partnered with companies like NVIDIA to support its GPU cloud services, indicating a clear strategy to capture the lucrative, high-power-density workloads driven by Generative AI.

For the B2B technology segment, this listing provides a critical bellwether. Data centres are the bedrock of modern enterprise IT. As Indian businesses accelerate their digital consumption, adopt artificial intelligence tools, and comply with government mandates for data localisation, reliable local infrastructure becomes a competitive necessity. The IPO will inject capital into the data centre market, thereby increasing capacity and potentially lowering deployment barriers for enterprises looking to scale their digital services.

A strong operational backdrop

Financial reports for the parent company show consolidated revenues of Rs. 3,988.6 crore in FY2025, a 12% year-over-year growth, largely supported by its data centre business, which accounted for approximately 36% of consolidated revenues.

While the parent company faces challenges in its digital and network segments, evidenced by a consolidated net loss in FY2025, the growth and operational stability of the data centre arm stand out, Sify Infinit Spaces reported a strong 28.2% revenue growth in FY2025, reaching Rs. 1,428.37 crore, with a profit of Rs.126.41 crore. This highlights the data centre business's operational strength and its increasing strategic importance within the overall Sify portfolio.

The data centre sector in India faces intense competition from global players like NTT, Temasek-backed STT Global Data Centres, and Carlyle Group-backed Nxtra Data Ltd. By successfully listing, Sify Infinit Spaces can gain a sustained source of public market funding to compete on a scale previously reserved for firms with large foreign backing. This enables the company to accelerate its planned USD 5 billion investment over five years, fortifying its market position and offering more robust, scalable infrastructure services to its enterprise client base.