Meta Platforms Inc. has announced a strategic partnership with **Sify Technologies Ltd.**, a Nasdaq-listed company focused on the Indian market, to develop a **500 MW data center** in **Visakhapatnam**. This venture underscores the growing interest of global technology firms in India’s burgeoning demand for AI compute resources as they seek to capitalize on the country’s digital transformation.
According to reports, **Sify Technologies** is set to invest approximately **₹15,226 crore** to establish the data center in **Paradesipalem village**, located about 25 km from Visakhapatnam along the highway to Kolkata. Once operational, this facility will be leased to **Meta Platforms**, which is the parent company of well-known platforms such as **Facebook**, **Instagram**, and **WhatsApp**.
In addition to the data center, Meta’s ambitious **subsea cable project ‘Waterworth’** will also make landfall at Sify’s landing station near Visakhapatnam, further integrating the two companies’ efforts. A source familiar with the arrangement stated, “Meta will be the end user. Sify will develop the data center and all related infrastructure till the racks,” indicating a collaborative effort in tech infrastructure development.
Expanding AI Infrastructure in India
Meta’s move to set up an AI data center in India is part of a broader trend, with companies like **Google** and **Tata Consultancy Services Ltd.** also investing in large-scale data center operations. This strategic interest comes as India boasts the world’s largest internet population, fueling a significant appetite for enhanced computing capabilities.
A recent report by **CBRE** indicates that India’s total data center capacity has surpassed **1.5 GW**, with **Mumbai** accounting for **53%** of the operational stock as of September 2025. Industry analysts at **ICRA Ltd.** predict this capacity will double to around **2.5 GW** by **2027-28**, requiring an estimated investment of nearly **₹90,000 crore**. Meanwhile, **Colliers** anticipates an even more aggressive growth trajectory, projecting capacity could reach **3.5-4.5 GW** by **2030**, necessitating a total investment of between **$25-30 billion**.
This influx of investment in India’s data infrastructure not only strengthens the local ecosystem but also enhances its global position in the AI landscape. As **Meta**, **Google**, and others ramp up their operations, they contribute to a robust environment that supports advancements in machine learning, data analytics, and cloud computing.
The implications of these developments extend beyond mere infrastructure. As data centers continue to proliferate, they will play a crucial role in supporting AI research and applications, ultimately fostering innovation and economic growth in the region. Meta’s partnership with Sify exemplifies how technology giants are increasingly recognizing the strategic importance of Indian markets for future growth in AI and cloud computing.
As the global demand for AI compute resources continues to rise, this collaboration between **Meta** and **Sify** may serve as a blueprint for future initiatives, highlighting the critical intersection of infrastructure investment and technological advancement in shaping the future of AI.
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