Fueling India’s tech surge: NaBFID lines up ₹3,000 crore loans for data hubs
The state-run development finance institution anticipates that the data centre sector will remain a steady driver of long-term project financing demand, driven by the expansion of hyperscalers and large cloud service providers across India.
- Sep 19, 2026,
- Updated Sep 19, 2026 1:00 AM IST
In a major push to strengthen India’s computing capabilities, the National Bank for Financing Infrastructure and Development (NaBFID) has sanctioned loans exceeding ₹3,000 crore each to at least four data centres, Bloomberg reported. The moves highlight the escalating capital requirements of the country’s artificial intelligence and cloud computing infrastructure expansion.
The state-run development finance institution anticipates that the data centre sector will remain a steady driver of long-term project financing demand, driven by the expansion of hyperscalers and large cloud service providers across India.
The sanctioned loans feature extended grace periods to accommodate the sector’s high capital demands. "The facilities sanctioned by Nabfid carry moratoriums of as much as five years, followed by repayment over the next 10 years," managing director Rajkiran Rai G said in an interview to Bloomberg.
Addressing the sector’s financial model, Rai added that such projects generate “good” cash flows despite their long construction periods, noting that Nabfid has seen strong interest from hyperscalers and cloud service providers.
Building data centres requires substantial upfront capital expenditure for land acquisition, power arrangements, advanced cooling systems, and specialized hardware before turning operational. However, the steady cash flows once these facilities go live make them an ideal candidate for long-term project finance.
The financing initiative comes alongside investments from domestic giants like the Adani Group, as well as global entities including EQT AB, Blackstone Inc., and Alphabet Inc., who are scaling up their infrastructure footprint in India.
According to an internal presentation, Nabfid estimates that data centres in India will require approximately ₹1 lakh crore in funding through March 2031.
To meet these capital demands, the institution is broadening its liquidity channels. Nabfid plans to raise around Rs 1 trillion in the financial year ending March, with roughly 40% expected to come from offshore sources by the end of December, Bloomberg reported.
The lender has already secured nearly $1 billion through foreign currency loans using a special window offered by the Reserve Bank of India through December 31. Additionally, foreign banks have been appointed to arrange a 10-year dollar bond of a similar size under the same mechanism by late September, Rai noted.
As India's infrastructure investments diversify beyond traditional roads and power sectors into the digital economy, long-term financing from institutions like Nabfid will remain critical to sustaining the ongoing AI expansion.
In a major push to strengthen India’s computing capabilities, the National Bank for Financing Infrastructure and Development (NaBFID) has sanctioned loans exceeding ₹3,000 crore each to at least four data centres, Bloomberg reported. The moves highlight the escalating capital requirements of the country’s artificial intelligence and cloud computing infrastructure expansion.
The state-run development finance institution anticipates that the data centre sector will remain a steady driver of long-term project financing demand, driven by the expansion of hyperscalers and large cloud service providers across India.
The sanctioned loans feature extended grace periods to accommodate the sector’s high capital demands. "The facilities sanctioned by Nabfid carry moratoriums of as much as five years, followed by repayment over the next 10 years," managing director Rajkiran Rai G said in an interview to Bloomberg.
Addressing the sector’s financial model, Rai added that such projects generate “good” cash flows despite their long construction periods, noting that Nabfid has seen strong interest from hyperscalers and cloud service providers.
Building data centres requires substantial upfront capital expenditure for land acquisition, power arrangements, advanced cooling systems, and specialized hardware before turning operational. However, the steady cash flows once these facilities go live make them an ideal candidate for long-term project finance.
The financing initiative comes alongside investments from domestic giants like the Adani Group, as well as global entities including EQT AB, Blackstone Inc., and Alphabet Inc., who are scaling up their infrastructure footprint in India.
According to an internal presentation, Nabfid estimates that data centres in India will require approximately ₹1 lakh crore in funding through March 2031.
To meet these capital demands, the institution is broadening its liquidity channels. Nabfid plans to raise around Rs 1 trillion in the financial year ending March, with roughly 40% expected to come from offshore sources by the end of December, Bloomberg reported.
The lender has already secured nearly $1 billion through foreign currency loans using a special window offered by the Reserve Bank of India through December 31. Additionally, foreign banks have been appointed to arrange a 10-year dollar bond of a similar size under the same mechanism by late September, Rai noted.
As India's infrastructure investments diversify beyond traditional roads and power sectors into the digital economy, long-term financing from institutions like Nabfid will remain critical to sustaining the ongoing AI expansion.