Sify Infinit Spaces IPO: Everything an Investor Should Know About This Nvidia-Certified Data Centre Player

Synopsis: A major AI ready data centre operator backed by long term hyperscaler contracts is preparing for a public listing, with strong capacity expansion, NVIDIA certified facilities, and rising revenues. The IPO aims to fund new campuses and reduce debt, positioning the company to benefit from India’s accelerating demand for cloud and AI infrastructure.

As demand for AI and cloud infrastructure accelerates, a major data centre company backed by long-term hyperscaler contracts and NVIDIA-certified facilities is gearing up for a public listing. With expanding capacity, rising revenues, and a strong foothold across India’s biggest digital hubs, the IPO is drawing attention from investors looking to tap into the country’s infrastructure megatrend. So who is this company quietly building scale before listing?

Sify Infinit Spaces Limited was set up in November 2017 as a public limited company and operates as a core data centre infrastructure platform in India. The company is promoted by Sify Technologies Limited along with Vegesna Ananta Koti Raju, Vegesna Bala Saraswathi, Ramanand Core Investment Company Private Limited, and Raju Vegesna Infotech & Industries Private Limited.

The company provides data centre colocation services and focuses on building, owning, and operating large carrier neutral data centres across major Indian markets. Its customers include hyperscalers, enterprises, and digital service providers. The company earns revenue mainly from colocation rentals, power usage, and related services, supported by strategic locations, scalable infrastructure, and integration with the broader Sify ecosystem.

A carrier-neutral data centre is a facility where customers can connect to multiple telecom networks, internet providers, and cloud platforms instead of being limited to a single provider.

What Do They Offer?

The company provides an integrated ecosystem of data centre services that includes colocation, build to suit facilities, interconnection, and value added solutions. These services allow customers to securely host their IT infrastructure in scalable and energy efficient environments, connect easily with partners and cloud platforms, and improve operations with customised digital solutions. By hosting both hyperscalers and enterprises in the same campuses, clients benefit from ultra low latency connections for critical workloads, while hyperscalers can enhance services for enterprise customers through proximity and seamless connectivity.

Clients can connect from these data centres to multiple interconnection points and cloud availability zones across providers.The company also offers network connectivity and digital IT services through its promoter Sify Technologies and group company Sify Digital Services, enabling it to deliver a broad and integrated ICT offering.

This combined platform allows the company to act as a one stop provider by offering connectivity up to the rack and access to multiple public cloud ecosystems. Additional services include compute and analytics solutions, meet me rooms, asset installation, power management, auditing, and maintenance support. 

Data Centre Capacity

As of June 30, 2025, the company operates 14 colocation data centre facilities across six cities in India, with its first facility dating back to 2000. These facilities are located in major demand hubs such as Mumbai, Chennai, Noida and Hyderabad. The company has a total built IT power capacity of 188.04 MW. Three of its newest facilities are certified by NVIDIA for AI workloads and both air and liquid cooling, while also holding Indian Green Building Council Platinum ratings and TIA-942 Rated 4 certifications. These credentials highlight its readiness to support AI demand, which is expected to account for 15 to 20 percent of data centre workloads by 2030.

The company has expanded capacity consistently, adding 95.41 MW between Fiscal 2023 and Fiscal 2025, which is higher than peers during the same period. As of March 31, 2025, it held a 15.26 percent market share by built IT capacity in India. Being one of the earliest and largest commercial data centre players in the country has helped the company build a meaningful presence in a rapidly growing domestic market. Its facilities are designed to be reliable, efficient and highly connected to support both hyperscaler and enterprise workloads.

Certain campuses such as Airoli in Mumbai and Bengaluru are designed to support public and hybrid cloud hosting, while using advanced cooling technologies including air, liquid and immersion cooling. The Rabale campus Tower 5 was the first in India to receive NVIDIA DGX-ready certification (DGX-Ready certifies colocation sites meeting Nvidia GPU system requirements only), demonstrating capability to support AI workloads. The Chennai 02 facility in Siruseri was the first in India to host an on-premises subsea cable landing station. 

Recent facilities at Rabale Tower 5, Chennai 02 Tower B and Noida 02 Tower B can support AI workloads of up to 130 kW per rack using direct to chip technology, with high computing density and advanced cooling infrastructure. The company also maintains industry-aligned PUE (Power Usage Effectiveness) levels.

Client Base

The company has a diversified client base of more than 500 customers as of June 30, 2025, with a balanced mix of hyperscalers and enterprise clients. Hyperscaler customers are a major driver of demand, contributing 67.81 percent of revenue in the three months ended June 30, 2025 and 69.32 percent in Fiscal 2025. The client roster includes 3 of the top 4 global hyperscaler companies operating in India, based on cloud services revenue in the second quarter of calendar year 2024, highlighting its strong positioning with large global cloud players.

The company also serves leading enterprise clients across sectors where digital infrastructure is critical. As of June 30, 2025, its customers included 7 of the top 10 Indian banks based on Fiscal 2024 revenues, 4 of the top 10 Indian insurance companies, a major European payments company, and 2 of the top 5 global social media companies based on smartphone app presence at the end of Fiscal 2025. This diversified exposure across industries strengthens demand stability and reduces dependence on any single sector.

Long term relationships have been built through a client focused approach and strong value proposition. As of June 30, 2025, the average relationship with the top 5 clients stood at seven years. Contracts with terms of at least seven years accounted for 67.04 percent of revenue in the June 2025 quarter and 68.34 percent in Fiscal 2025, with an average remaining contract life of five years. Since Fiscal 2023, all customers have either renewed or expanded services. Recurring revenue from the top 5 clients rose from 74.12 percent in Fiscal 2023 to 76.89 percent in Fiscal 2025, supporting predictable cash flows and strong revenue visibility.

The Edge 

The company benefits from strong partnerships within the Sify Group through its promoter Sify Technologies Limited (STL) and group company Sify Digital Services Limited (SDSL). STL, listed on NASDAQ since October 1999, provides enterprise connectivity, international cable partnerships, domestic mesh networks, dark fiber, SD-WAN, unified communications, and cloud interconnect ecosystems. SDSL focuses on digital transformation solutions including applications, platforms, IT infrastructure management, and cybersecurity. Together, these partnerships allow the company to offer integrated services covering data centres, network, cloud, digital, and IT solutions under a unified go to market strategy.

This integrated approach creates cross sell and upsell opportunities and allows the company to provide end to end ICT solutions to clients. The association with a NASDAQ listed promoter has also strengthened governance standards. STL has delivered a 193 percent return on NASDAQ in the last year. The “One Sify Marketplace” platform allows enterprise clients to add colocation capacity digitally without human intervention, enabling faster deployment. As of October 16, 2025, JP Morgan Chase Bank held 16.20 percent in Sify Technologies Limited through ADS holdings, reflecting strong institutional presence.

The company is led by an experienced management team with deep expertise in data centres and IT services. Chairperson and promoter Vegesna Ananta Koti Raju has over 23 years of experience in technology and entrepreneurship in Silicon Valley and holds US patents related to CPU architecture and high performance register file design. The senior management team brings decades of experience across data centres, finance, and governance, supporting operational execution and strategic direction.

Group COO and Whole Time Director Chintaluri Venkata Rajeswara Rao has over 16 years of experience in operations and management. Senior leader Sharad Agarwal has over 19 years of experience and previously worked with Vantage Data Centers, Amazon Data Services India, and Orange Business Services. CFO Ganesh Sankararaman has over 24 years of experience across finance and risk functions and holds Chartered Accountant and Cost Accountant certifications. Chief Risk Officer CB Priya also has over 24 years of experience. The company also receives strategic guidance from Kotak Investment Advisors and Kotak Alternate Asset Managers.

Reliable power access is critical for data centre operations, and the company has implemented multiple measures to ensure uninterrupted supply. All data centres serving hyperscalers are equipped with onsite substations and step down transformers. The company is also increasing the use of renewable energy to reduce dependence on conventional sources and improve sustainability. As of June 30, 2025, about 58.69 percent of power used at the Rabale campus Towers 1 to 3, Vashi, and Airoli facilities over the last 12 months came from renewable sources, which is higher than industry levels.

Between 2023 and 2025, renewable energy formed 54.47 percent of the power mix at the Rabale campus, rising to 62.59 percent as of June 30, 2025. The company has also contracted 309.60 MW peak renewable power through long term PPAs and has made equity investments in renewable projects. Efficient design, advanced cooling technologies, and water efficiency initiatives help maintain industry aligned PUE levels and low water usage effectiveness. These measures reduce operational risks and support long term energy security while meeting sustainability expectations of hyperscaler and enterprise clients.

The company plans to expand its data centre capacity by building new facilities in key locations and upgrading existing infrastructure to meet rising demand in India. It also aims to add advanced features such as subsea cable connectivity and earthquake resistant designs. A major focus is scaling AI ready capacity with high power density infrastructure, advanced cooling like liquid and direct to chip systems, and modular designs. The company expects AI workloads to become a key growth driver by 2030 and is preparing its facilities to stay competitive.

Alongside capacity expansion, the company plans to increase renewable energy usage and improve sustainability across operations, focusing on energy efficiency, water management, emissions reduction and responsible supply chains. It also aims to deepen relationships with hyperscalers and expand its enterprise client base, supported by data localisation trends. The company plans to allocate space to high value sectors like deep tech and semiconductors while using group cross selling opportunities to grow. It is also expanding its edge data centre presence, with facilities under development in Lucknow and Chandigarh.

Financials

SEBI approved the IPO of Sify Infinit Spaces on January 23, 2026, and the approval is valid for 12 months. The IPO is a book-built issue of Rs. 3,700 crore, which includes a fresh issue of Rs. 2,500 crore and an offer for sale of Rs. 1,200 crore. The shares are proposed to be listed on NSE and BSE.

The company plans to use the funds mainly for expansion and debt repayment. This includes Rs. 465 crore for completing Tower B at the Siruseri, Chennai data centre, Rs. 860 crore for setting up Towers 11 and 12 at the Rabale, Navi Mumbai data centre, and Rs. 600 crore for repayment or prepayment of borrowings. The lead managers for the issue are JM Financial, CLSA India, JP Morgan India, Kotak Mahindra Capital, and Morgan Stanley India.

Between Fiscal 2024 and Fiscal 2025, Sify Infinit Spaces reported strong growth, with revenue from operations rising 28.20 percent from Rs. 1,114 crore to Rs. 1,428 crore. EBITDA increased to Rs. 634 crore in FY25 from Rs. 465 crore in FY24, while EBITDA margins improved from 41.76 percent to 44.40 percent, showing better operating efficiency. Profit after tax rose to Rs. 126 crore in FY25 from Rs. 93 crore in FY24, a growth of 35.4 percent, with PAT margin at 8.85 percent.

In Q1FY26, the company reported revenue of Rs. 398 crore and EBITDA of Rs. 177 crore, with EBITDA margins at 44.33 percent. Profit after tax stood at Rs. 13.6 crore, with PAT margins at 3.42 percent, which is lower than FY25 levels. Net debt stood at Rs. 2,739 crore as of Q1FY26, and has been rising from Rs. 1,600 crore in FY23 to Rs. 2,150 crore in FY24 and Rs. 2,324 crore in FY25. The Net Debt-to-EBITDA ratio is 3.87 and Debt-to-Equity stood at 1.38 as of June 30th 2025. The company generated operating cash flow of Rs. 611 crore in FY25. Total assets stood at Rs. 4,940 crore, while trade receivables were Rs. 346 crore as of June 30, 2025.

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