Daijiworld Media Network - New Delhi

New Delhi, Sep 19: The National Bank for Financing Infrastructure and Development (NaBFID) has sanctioned loans exceeding Rs 3,000 crore each to at least four data-centre projects, highlighting the growing capital requirements of India's artificial intelligence and cloud-computing infrastructure, Bloomberg reported.

The state-run development finance institution expects the data-centre sector to remain a steady source of long-term project-financing demand, driven by the expansion of hyperscalers and major cloud-service providers in India.

The sanctioned facilities carry extended moratoriums to accommodate the sector's high upfront capital requirements. NaBFID Managing Director Rajkiran Rai G said the loans have moratoriums of up to five years, followed by repayment over the next 10 years.

Rai said data-centre projects generate “good” cash flows despite their long construction periods and added that NaBFID has seen strong interest from hyperscalers and cloud-service providers.

Data centres require substantial upfront investment in land, power infrastructure, advanced cooling systems and specialised hardware before becoming operational. However, steady cash flows after commissioning make the projects suitable for long-term financing.

The financing push comes as domestic groups such as the Adani Group and global investors including EQT AB, Blackstone Inc. and Alphabet Inc. expand their data-centre infrastructure in India.

According to an internal presentation, NaBFID estimates that India's data-centre sector will require around Rs 1 lakh crore in funding through March 2031.

To meet the growing demand for capital, NaBFID is expanding its funding channels. The institution plans to raise around Rs 1 trillion during the financial year ending March, with about 40% expected to come from offshore sources by the end of December, Bloomberg reported.

NaBFID has already raised nearly $1 billion through foreign-currency loans under a special Reserve Bank of India window available until December 31. Foreign banks have also been appointed to arrange a 10-year dollar bond of a similar size under the mechanism, Rai said.

The increased financing comes as India's infrastructure investment expands beyond traditional sectors such as roads and power into digital infrastructure, including data centres supporting the country's growing AI and cloud-computing ecosystem.