Sify earmarks $5 billion to expand data hubs, add AI ops and GPUs

Sify Technologies plans to build smaller AI inferencing facilities in 20 tier-II cities as India is expected to be among the largest markets of AI services and inferencing rather than training, Vegesna said who is helming the only Indian company listed on Nas…
Lolita Steuber · 10 days ago · 2 minutes read


Sify's Transformative Journey: A Billion-Dollar Investment in AI

Expansion Plans: A Network of AI Factories

Sify Technologies, a cloud infrastructure and services giant, is poised to invest a staggering $5 billion over the next five years to establish a chain of next-generation data centers and strengthen its internal systems with the power of AI.

"We plan to construct smaller AI inferencing facilities in 20 tier-II cities," said Raju Vegesna, Sify's Chairman and MD, emphasizing that India is expected to become one of the most significant markets for AI inferencing.

Funding the Expansion: A Strategic Approach

"We will secure the necessary funding as required," Vegesna stated. "Raising $5 billion in equity plus debt is not a hindrance."

Investing in Tier-2 Cities: A Catalyst for Digital Transformation

Sify's strategy focuses on expanding to 20 tier-II/tier-3 cities to harness the potential of shifting Special Economic Zones and IT resources.

"We need to take the current IT resources to the next level with AI," Vegesna explained. "Investing in these cities will build a digital infrastructure capable of supporting AI."

AI Adoption in India: A Promising Horizon

While India is progressing in AI adoption, a significant opportunity lies ahead. "We need to have good data first," Vegesna emphasized, commending the government's support through the AI Mission.

Challenges at the Intersection of AI and Data Centers

Vegesna highlighted the technological complexities of managing data centers with AI deployment.

"Liquid cooling, renewable energy, and AIOps to predict failures are essential considerations to ensure seamless connectivity and 24/7 operation," he noted.

Opinion on the 70-Hour Work Week Debate

Vegesna expressed a nuanced view. "We need to work hard, but we must work smarter," he said. "Instead of extended working hours, we need to prioritize efficiency and innovation."