International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, has proposed to invest ₹1,278 crore ($150 million) in NTT Global Data Centers & Cloud Infrastructure India Pvt Ltd (NTTGDC) to support the company’s ongoing expansion of data centre capacity in India.
In addition to its own investment, IFC plans to mobilise up to ₹852 crore ($100 million) from other lenders, taking the total proposed financing package to ₹2,130 crore ($250 million).
Funding to support new data centre capacity
According to IFC, the financing from its own account will be used to support the development of new data centres across NTTGDC’s existing brownfield campuses, where projects are currently in various stages of planning and construction.
The funds mobilised from other lenders will primarily be utilised to refinance existing borrowings with longer-tenure debt, helping strengthen the company’s capital structure.
Strengthening India’s digital infrastructure
NTTGDC is a developer and operator of carrier-neutral, multi-tenant data centres and is wholly owned by Nippon Telegraph and Telephone Corporation (NTT Corporation), Japan’s largest telecommunications company.
The company currently has a portfolio of 21 data centres across India. Of these, 16 facilities are operational, offering a combined capacity of 237 MW, while five additional data centres, with a total planned capacity of 105 MW, are under construction.
The proposed financing is expected to help accelerate the completion of these facilities, expanding data hosting capacity to meet rising demand from enterprises and digital businesses.
Supporting India’s digital economy
IFC said the project is expected to improve access to data hosting services for businesses in India by enabling NTTGDC to complete the construction of new data centres.
The expanded capacity is expected to help enterprises enhance productivity while supporting the delivery of digital services to consumers. IFC also noted that the project would strengthen competition in India’s growing data hosting market by increasing overall industry capacity.
Financial and operational support
Beyond providing capital, IFC said its participation brings both financial and non-financial value. On the financial side, IFC will help NTTGDC secure long-term, fixed-rate financing, providing an alternative to short-term floating-rate borrowings while diversifying its lender base.
From a non-financial perspective, IFC will require the company to develop and implement a comprehensive Environmental and Social Management System (ESMS) aligned with IFC Performance Standards. The framework will include safeguards related to labour practices, environmental management and gender-based violence (GBV).
The proposed investment comes as India’s data centre industry continues to witness rapid growth, driven by increasing cloud adoption, artificial intelligence workloads, digital transformation initiatives and rising demand for secure data storage infrastructure