Sify launches AI data center in Chennai; expected to create 10k direct and indirect jobs

Data center provider Sify Infinit Spaces on Thursday inaugurated its Artificial Intelligence (AI)-ready data center in Chennai. This is the company’s second data center in the city. With an eventual capacity of 130 MW, it is the only data center in India with an on-site open cable landing station, providing enhanced global connectivity and network performance, the company said.

"With our cumulative investment now crossing ₹10,000 crore from an initial commitment of ₹2,500 crore, we are not only building digital infrastructure but also creating an ecosystem of opportunity. We envision generating employment for 10,000 people—direct and indirect— as this facility ramps up,” said Raju Vegesna, managing director and chairman of Sify Technologies, the parent company of Sify Infinit Spaces.

The Chennai 02 data center as it is called, has one of its three towers already operational. In the company months, the other two towers will also be operational. The facility will serve as a critical enabler for AI workloads and digital-first enterprises, providing scalable infrastructure and high-performance computing capabilities. This data center will service international customers including hyperscalers, enterprises, and government institutions. 

About 60% of its power needs are met by renewable sources through partners like Sunsure Energy and Vibrant Energy. A company executive said that it aims at increasing it to 80-90% in the coming years.

Notably, the company has six major data centers in India and facilities in tier-2 cities — Lucknow and Chandigarh. The ground breaking ceremony for the Lucknow data center was organised in February. Being built in four phases, the first phase is likely be operational by June. 

Vegesna in a media interaction, said that the company will now focus on building data centers in tier-2 cities, growing by 4–5 centers, albeit smaller, every year. This could be seen in the context of the January announcement were the company said that it plans to build smaller inference facilities across 20 secondary locations. Vegesna told TechCircle that tier 2 and 3 cities offer great opportunities with more number of technology companies establishing offices and with the abundance of talent.

During the same time, the NASDAQ-listed ICT solutions provider company also committed to invest $5 billion in five years into its data centers and AI services functions.

Further, in October 2024, Sify introduced CloudInfinit+AI, a GPU cloud platform designed to support AI, machine learning, deep learning, and rendering workloads. This service offers pay-as-you-go access to GPUs and is optimised for hybrid cloud deployments.

Note: The author was in Chennai on Sify’s invitation.