Sify yet to begin work on two data centre projects

Sify Technologies is yet to begin construction on two proposed data centres in Visakhapatnam, despite securing 28.6 acres of land at concessional rates for projects involving a combined investment of ₹16,726 crore.

The company was allotted 3.6 acres on Hill No. 3 at Rushikonda IT Park, reportedly worth ₹150 crore, for ₹3.6 crore to build a 50 MW data centre. After announcing an investment of ₹1,500 crore in October last year, Sify promised 1,000 jobs and committed to making the facility operational by October 2027. Though the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) granted the necessary building permissions, construction is yet to begin.

In June this year, the government allotted another 25 acres at Paradesipalem for a proposed 500 MW data centre. The land was reportedly priced at ₹50 lakh an acre, with Sify announcing an investment of ₹15,226 crore. However, work on neither project has commenced.

The delay has raised questions about implementing the proposed investments and using the allotted land, especially as the Rushikonda project’s operational deadline approaches.

APIIC officials said the necessary permissions for the Rushikonda facility had been granted and that the company was being urged to commence construction at the earliest.