Starting April 1, the Indian Government will classify data centers as infrastructure assets in an effort to help data center companies get better access to funds through loans or investments via access to long-term and cheaper institutional funds.
Data centers and energy storage systems will be counted in the list of infrastructure, a classification that would help make credit facilities available for digital infrastructure and clean-energy storage, according to Nirmala Sitharaman, India's finance minister.
In a LinkedIn post, Sunil Gupta, co-founder and CEO of Yotta, called the classification “a step in the right direction for the booming Indian data center industry.”
“This will ensure better access to capital borrowings at a reduced rate since banks have relaxation in the maintenance of capital adequacy for Infra lending,” noted Gupta. “A long-standing demand of the industry is finally fulfilled. This shall give a major fillip to digital infrastructu
