NABFID Sanctions ₹3,000 Crore Loans for 4 Data Centres as India Expands AI Infrastructure

The National Bank for Financing Infrastructure and Development (NABFID) has sanctioned loans of more than ₹3,000 crore each to at least four data centre projects in India, according to a Business Standard news report.  

The loans come as companies increase spending on facilities used for data storage and computing. 

Loan Repayment Period 

The projects have a moratorium of up to five years, followed by a repayment period of 10 years, Managing Director Rajkiran Rai G. said in an interview. 

Data centres can take a long time to build and require large amounts of capital. Nabfid has received loan demand from hyperscalers and large cloud service providers for such projects. 

Investment in AI Infrastructure 

Spending on data centres has increased as companies prepare computing capacity for artificial intelligence applications. Global investors such as EQT AB, Blackstone Inc. and Alphabet Inc. have committed funds to AI computing infrastructure in India. 

Indian companies are also investing in the sector. Adani Group is among the domestic groups that have committed funds towards data centre and AI infrastructure. 

₹1 Trillion Funding Requirement 

NABFID estimates that India’s data centres will require about ₹1 trillion in funding through March 2031. The estimate shows the capital required for new and expanded data centre capacity over the period. 

NABFID’s Fundraising Plans 

NABFID plans to raise ₹1 trillion during the financial year ending March. About 40% of this amount is expected to come from overseas sources by the end of December. 

The lender has already raised close to $1 billion through offshore loans under the Reserve Bank of India’s concessional window, which is available until December 31, 2026. 

Dollar Bond Planned 

NABFID has also mandated foreign banks to mobilise a 10-year dollar bond of a similar size through the concessional window by the end of September 2026. The borrowing plan comes as the lender works to diversify its funding sources. 

Read More: Commerce Ministry Proposes ₹23,000 Crore RoDTEP Outlay for FY27, Seeks Five-Year Extension! 

Conclusion 

The data centre loans form part of a larger funding requirement for India’s computing infrastructure. Nabfid expects the sector to need about ₹1 trillion in financing through March 2031. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.