Sify Makes Major Renewable Energy Commitment

Sify Technologies Limited (NASDAQ: SIFY) announced a major commitment to renewable energy for its growing data center portfolio in India. The company recently concluded power purchase agreements (PPAs) with Vibrant Energy Holdings (“Vibrant”), a majority-owned subsidiary of Blue Leaf Energy Asia Pte. Ltd. (“Blueleaf Energy”) which is a portfolio company of Macquarie’s GIG. The Purchasing Power Agreement (PPAs) are for a total 231MW of solar and wind energy capacity to power Sify’s latest hyperscale data centers, of which 67MW solar PPA had been signed in March 2021 and recently commissioned.

Image source: Sify

This partnership is the first step in a clear roadmap for the company to minimise its dependence on fossil fuels to power its fast-growing data center business, dramatically reducing its carbon footprint. By simultaneously investing in both solar and wind energy, Sify will soon be able to deliver most of the power required. This will be utilised for its flagship data centers in Mumbai from renewable sources and intends to continue increasing renewable penetration across its nationwide footprint.

Raju Vegesna, Chairman, Sify said, “There is an intensifying narrative about adopting green energy. We decided to lead by action, as we always have done in the ICT space.  With the constantly expanding need for world-class data center facilities to meet the burgeoning data-centric transformation of Indian businesses, we believe that investing in clean energy sources to fuel this transformation is a social imperative.  Sify is proud to be doing its part to help our customers become a part of this clean energy future”.

Image source: Sify

These changes come at a time when India is fast accelerating towards new technology. While it took us a few years to go from 2G to 3G, such is not the case while moving from 3G to 5G. This fast adoption of technology and accelerated use of technology makes for a strong case when we talk about data storage. Using renewable energy for storing data is the next big thing, given how much electricity we are consuming on a day-to-day basis. Talking about renewables, M P Vijay Kumar, CFO, Sify, said, “As an early adopter of ESG guidelines, Sify has constantly pushed the envelope in the Data Center space. This shift to renewables will deliver clear economic advantages, but it is also about proving the viability of adopting green energy solutions at an industrial scale.”

Image source: Sify

In order to expand its renewable footprint, Sify is partnering with Vibrant Energy. Srini Viswanathan, CEO, Vibrant Energy, says about this partnership: “We are honored to partner with Sify in their journey to build sustainable data center solutions in the Indian market. Vibrant is looking forward to continuing to work with Sify to support them in their 100% renewable energy goals.”

Oliver Lewis, Chairman of Vibrant Energy and Executive Director of GIG, a firm partnering with Sify says: “We are very excited by Vibrant’s continued growth incapacity to provide green energy solutions to businesses in India, supporting India’s decarbonization. The partnership with Sify Technologies marks a new milestone on Vibrant’s journey of providing green energy and tailored solutions to meet the growing business demand.”

It is a combination of multiple players who have to come together to make this project possible, at a time when renewable and database management are both burning topics.