JBIC Bets on India’s Future as a Data Center Powerhouse

March 31, 2025

The Japan Bank for International Cooperation has signed a loan agreement with NTT Global Data Centers & Cloud Infrastructure India Private Limited (NTT GDCI), an Indian group company of Nippon Telegraph and Telephone Corporation (NTT), amounting to up to INR13 billion. The loan is co-financed with MUFG Bank, Ltd. and Mizuho Bank, Ltd., bringing the total co-financing amount to INR 21.7 billion.  

The loan is intended to provide the funds necessary for NTT GDCI to build and operate data centers in the states of Maharashtra and Tamil Nadu. 

In the Medium-Term Management Strategy announced in May 2023, NTT set a goal of investing at least approximately JPY1.5 trillion in its data center business over five years with the aim of further expanding its data center infrastructure, which is the third largest in the world. To this end, India’s data center market is crucial for NTT Group. The government of India launched its Data Center Policy 2020, which envisions making India a global data center hub. The market is expected to expand amid the prospect of further increases in data traffic due to the growing use of digital technologies, such as generative AI, e-commerce, and social media. 

The loan will provide financial support for the overseas business expansion of NTT and help improve the business environment for Japanese companies and enhance their supply chain resilience by ensuring secure telecommunications infrastructures whose reliability and safety are assured. The loan will also contribute toward maintaining and strengthening the international competitiveness of Japanese industries. Additionally, on October 25, 2024, JBIC signed an arrangement to cooperate with the launch of the Digital Infrastructure Growth Initiative for India (DiGi) with the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of Korea (KEXIM). JBIC extends the loan under the DiGi framework.  

In a social media post released Deepa Salvan, Principal International Finance, JBIC mentioned "NTT, the world’s third-largest data center provider, is expanding its footprint in India with a ₹13 billion loan from JBIC. This investment will drive the development of state-of-the-art data centers in Maharashtra and Tamil Nadu, strengthening India’s position as a preferred destination for hyperscalers and meeting the surging demand from BFSI, IT & ITES sectors."

JBIC continues to support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, including local currency loans.