Sify Technologies: Positive Beneficiary of the Potential IPO of Sify Infinit Spaces

• The potential IPO of Sify Infinite Spaces is likely to have a positive impact on Sify Technologies.

• The overall market size of data centers in India is huge and Sify Infinite Spaces certainly has the experience and capability to become one of the leaders in this segment.

• Despite attractive market opportunity, there will be some investors that will question the overall valuation levels of Sify Infinite Spaces to justify seeking nearly 30 billion INR in the IPO.

IPO of Sify Infinite Spaces (Data Centre Business of Sify Technologies)

According to Livemint, Sify Infinite Spaces (data centre business of Sify Technologies) is looking to raise 3,000 crore (30 billion INR or US$343 million) through an IPO.

In January 2025, Sify Technologies announced that it plans to invest US$5 billion in expanding its data centers and artificial intelligence operations in India. Sify Technologies launched a GPU cloud offering in October last year. Its CloudInfinit+AI solution gives users access to GPUs on a pay-as-you-go-basis.

The GPUs are likely from Nvidia following the announcement in September 2024 that Sify would become a Nvidia colocation partner. Although there have been some near term concerns about the overall slowdown in the capex spending for data centers world wide post the release of DeepSeek technology in China, it is likely that the capex spending for data centers in India is likely to continue to grow at a healthy rate in the next 3-5 years.

Kotak has invested US$120 million (10 billion INR) through Kotak Special Situation Fund and Kotak Data Centre Fund in Sify Infinit Spaces is a wholly owned subsidiary of Sify Technologies.

Source: Company data

Sify Infinit Spaces Company Background

Sify Infinit Spaces is a subsidiary of Sify Technologies. Sify Infinite Spaces is focused on providing a comprehensive data center related services. Sifi Infinit Spaces currently operates As of now, Sify operates 14 data centers across India, offering over 227 MW of IT power, with plans to expand to 407+ MW by 2025.

These facilities are strategically located in key cities, ensuring optimal connectivity and accessibility for clients. The campuses are designed to be scalable, with the potential to reach up to 970+ MW, accommodating future growth and technological advancements.