Sify Infinit Spaces IPO

Sify Infinit Spaces Limited IPO Strengths

Pan-India Leading Digital Infrastructure Provider

Sify Infinit Spaces Limited is one of the top three data centre colocation providers in India. It operates a pan-India network of 14 facilities across six major cities with a total built IT power capacity of 188.04 MW. Its strategic presence in high-demand clusters like Mumbai and Chennai positions it to capitalize on the growing needs of hyperscale and enterprise clients effectively.

Strategic and Hyperconnected Data Centre Locations

The company’s data centres are strategically located in key commercial hubs and in proximity to international undersea cable landing points. This ensures low-latency access and strong global connectivity for its clients. Locations in cities like Mumbai and Chennai are among India’s fastest-growing data centre clusters, providing a significant competitive advantage.

Advanced and High-Performance Infrastructure

Sify Infinit Spaces Limited deploys advanced cooling technologies, including air, liquid, and immersion cooling systems. Three of its latest facilities are NVIDIA-certified as AI-ready. Its carrier-neutral data centres feature multiple fiber paths and internet exchange points, ensuring high reliability, 99.99%+ uptime, and support for high-density AI workloads up to 130 kW per rack.

Deep Industry Expertise and Operational Excellence

The company leverages over three decades of domain knowledge from the Sify Group. It possesses in-house expertise in engineering, site selection, power management, and project management. This enables Sify Infinit Spaces Limited to achieve high build speeds, cost efficiencies, and deliver high-performance digital infrastructure, swiftly transitioning new capacity into revenue.

Long-Term Relationships with a Distinguished Client Base

Sify Infinit Spaces Limited boasts a diversified client base of over 500 clients, including top global hyperscalers and leading Indian enterprises. Its relationships are long-term and sticky, with a significant portion of revenue coming from contracts of at least seven years. This provides predictable annuity revenue and high visibility for future cash flows.

Strategic Converged Offering within Sify Group

The company benefits from a unified go-to-market strategy with its promoter, Sify Technologies Limited, and group company, Sify Digital Services Limited. This converged platform allows for cross-selling of data centre, network, cloud, and IT solutions. Clients benefit from an integrated ICT offering, enhancing the value proposition and client stickiness.

Commitment to Power Efficiency and Sustainability

Sify Infinit Spaces Limited is committed to sustainable operations, with a notably high usage of renewable energy in its power mix. It holds long-term Power Purchase Agreements for renewable power and maintains top-tier certifications like IGBC Platinum. This focus on sustainability makes it a partner of choice for environmentally conscious hyperscalers and enterprises.

Robust Financial Profile with Strong Growth

The company demonstrates a robust financial performance with consistent revenue growth and a strong EBITDA margin of over 44%. Its contractual arrangements with clients provide cash flow visibility and stability. The combination of scale, growth, profitability, and predictable returns underpins its solid financial foundation.

More About Sify Infinit Spaces Limited

Sify Infinit Spaces Limited, a part of the renowned Sify Group, has established itself as a cornerstone of India’s digital economy. It is one of the country’s leading providers of data centre colocation services, operating a robust network of 14 facilities across six strategic cities: Mumbai, Chennai, Noida, Hyderabad, Bengaluru, and Kolkata. As of June 30, 2025, the company commands a total built IT power capacity of 188.04 MW.

Comprehensive Service Portfolio

The company offers a full spectrum of digital infrastructure services tailored to meet the evolving needs of its clients:

• Colocation Services: Providing secure, scalable, and reliable space for clients to host their IT infrastructure.

• Build-to-Suit: Developing custom-designed data centre facilities to meet the specific requirements of large clients, particularly hyperscalers.

• Interconnection Services: Enabling low-latency, high-performance connectivity between different clients and cloud providers within its data centres.

• Value-Added Digital Services: Offering a range of services including security, cloud management, and other digital solutions.

AI-Ready and Certified Infrastructure

Staying ahead of technological curves, Sify Infinit Spaces Limited has developed future-ready infrastructure. Three of its newest facilities are certified by NVIDIA for AI workloads, supporting both air and liquid cooling. This positions the company at the forefront of the AI revolution in India. Furthermore, its facilities boast the highest industry certifications, including TIA-942 Rated 4 for fault-tolerant infrastructure and the Indian Green Building Council’s Platinum rating for sustainability, alongside compliance with PCI DSS, SOC I/II, and ISO 27001 standards.

The Sify Group Advantage

The company operates as a converged platform within the Sify Group. This strategic synergy allows it to offer clients a one-stop solution for all their Information and Communications Technology (ICT) needs. Through its promoter, Sify Technologies Limited (STL), it provides extensive network and connectivity services, while Sify Digital Services Limited (SDSL) offers advanced digital transformation solutions. This integrated approach, reinforced by the “One Sify Marketplace” online platform, facilitates efficient cross-selling and enhances client retention and value.

Industry Outlook

The Indian data centre industry is poised for an unprecedented growth trajectory, driven by a massive digital transformation wave. According to industry reports, the data centre demand in India, which stood at approximately 1.3 GW in Fiscal 2025, is projected to surge to between 4.7 GW and 5.7 GW by Fiscal 2030. This represents a staggering Compound Annual Growth Rate (CAGR) of 30.1% to 35.1% over the period.

Key Growth Drivers

• Data Localization Regulations: Mandates requiring data to be stored within India’s borders are creating significant demand for domestic data centre capacity.

• Rapid Digitalization: Increased internet penetration, smartphone adoption, and the shift to cloud-based solutions across enterprises and consumers are fuelling data consumption.

• 5G Rollout: The expansion of 5G networks will catalyse new applications in IoT, augmented reality, and real-time analytics, necessitating edge data centres and core infrastructure.

• Adoption of Artificial Intelligence (AI): AI and generative AI workloads require high-power density and advanced cooling solutions. The share of AI-related workloads is expected to rise from less than 1% in Fiscal 2025 to 15-20% by Fiscal 2030, creating demand for 0.7 GW to 1.1 GW of AI-optimized data centre capacity.

• Hyperscale Expansion: Global cloud service providers are aggressively expanding their footprint in India to capture the growing market, contributing to over 65% of the demand.

Outlook for Colocation and AI-Ready Infrastructure

Within this booming industry, the demand for sophisticated colocation services, particularly for AI-ready infrastructure, is accelerating. Hyperscale demand is expected to grow at a CAGR of 34.5% to 41.7%. Furthermore, the need for edge data centres is also rising to support low-latency applications like gaming, video streaming, and IoT. Companies that offer hyperconnected, sustainable, and advanced infrastructure, like Sify Infinit Spaces Limited, are uniquely positioned to be the primary beneficiaries of this multi-year growth cycle.

How Will Sify Infinit Spaces Limited Benefit

• Benefit from the massive capacity gap, with industry demand projected to grow 4-5 times by 2030, allowing it to fill its existing and planned data centres.

• Capitalize on the hyperscale demand boom, which is its core client segment, by offering scalable capacity in strategic locations.

• Leverage its first-mover advantage in AI-ready infrastructure to capture high-value contracts as AI workloads become mainstream, commanding premium pricing.

• Utilize its deep expertise and in-house capabilities to expand capacity swiftly and cost-effectively, staying ahead of competitors.

• Monetize the growing need for edge computing by developing edge data centres in cities like Lucknow and Chandigarh to serve new demand pockets.

• Strengthen its value proposition to enterprise clients, especially in BFSI, who are mandated to use TIA-942 Rated 4 certified facilities, a certification it already holds.

• Enhance its sustainability-led marketing to attract global hyperscalers and enterprises who are increasingly prioritizing green partners for their ESG goals.

• Use the integrated Sify Group platform to cross-sell services to a wider client base, increasing wallet share and building deeper client relationships.

Peer Group Comparison

Name of the Company	Face Value (₹)	Revenue (₹ million)	Basic EPS (₹)	NAV (₹ per share)	P/E Ratio	RONW (%)
Sify Infinit Spaces Limited	10	14,283.65	2.45	28.82	[●]^	7.68%
Peer Group
Equinix, Inc.	0.08	731,953.66	714.55	11,995.45	100.90	6.22%
Digital Realty Trust, Inc.	0.85	464,789.57	145.59	546.93	115.46	2.96%
NEXTDC Limited	N.A.	23,504.86	-5.28	366.88	NM*	-1.55%

Key Strategies for Sify Infinit Spaces Limited

Expanding Power Capacity and Expertise

Sify Infinit Spaces Limited is committed to aggressively expanding its digital infrastructure to meet the projected surge in data centre demand in India. The company plans to develop 11 new data centre facilities across strategic locations like Mumbai, Noida, and Chennai. This strategy involves incorporating advanced technological features, including subsea cable connectivity and earthquake-resistant designs, to maintain its competitive edge and capture long-term client relationships in a market driven by data localization norms.

Upscaling AI-Ready Capabilities

The company is strategically scaling up its AI-ready data centre capacity to address the specific demands of high-power-density AI workloads. By deploying advanced liquid cooling systems and modular designs in its NVIDIA-certified facilities, Sify Infinit Spaces Limited aims to attract high-value clients in the AI domain. This focus positions the company to capitalize on the anticipated growth of AI-related data centre demand, which is expected to constitute a significant share of the market by 2030.

Focus on Renewable Investments and Sustainability

Sify Infinit Spaces Limited will continue its strong commitment to sustainability by increasing investments in renewable energy sources. The strategy includes entering into long-term Power Purchase Agreements and investing in additional renewable energy capacity to power its operations. This aligns with global ESG priorities and enhances its appeal to environmentally conscious hyperscalers and enterprises, while also securing a stable and sustainable power supply for its future growth.

Upscaling Relationships and Expanding Client Base

The company plans to deepen relationships with existing hyperscale clients while expanding its enterprise client base, focusing on sectors like deep tech and manufacturing. Leveraging the Sify Group’s unified go-to-market strategy, it aims to cross-sell data centre services to the existing clients of its group companies. This dual approach is designed to maximize revenue from high-value, long-term partnerships and drive sustainable growth.

Strengthen Access to Interconnection Services

Sify Infinit Spaces Limited intends to enhance and up-sell its interconnection services, capitalizing on the network effect between its hyperscale and enterprise clients. By providing more low-latency connection points within its data centres, the company will strengthen the self-reinforcing cycle of demand, making its ecosystem more valuable and stickier for all clients, thereby increasing its revenue per client.

Widening Edge Data Centre Presence

Recognizing the growing demand for low-latency processing from IoT and real-time applications, the company is expanding its edge data centre footprint. With facilities under development in Lucknow and Chandigarh, Sify Infinit Spaces Limited aims to provide mainstream data centre capabilities at the edge, catering to the evolving needs of hyperscalers and supporting the next wave of digital consumption.