Sify Technologies on Wednesday said it has concluded power purchase agreements with Vibrant Energy Holdings for a total of 231mw of solar and wind energy to power Sify’s data centres.

Hyderabad-based Vibrant Energy is a majority owned subsidiary of Blue Leaf Energy Asia, which is a portfolio company of Macquarie’s Green Investment Group. The investment in setting up the capacity is Rs 1,250 crore.

The investment will be a combination of debt and equity in the ratio 2:1. In the equity portion, Sify will hold about 26 per cent. Nasdaq-listed Sify said the company is looking to minimise its fossil fuel use to power its fast growing data center business and reduce its carbon footprint. Sify has 11 data centres in the country, including Calcutta, with a combined capacity of over 80mw.

The 231mw of renewable energy will power the data centres in Mumbai of which 67mw solar PPA was recently commissioned.

“The shift to renewables will deliver clear economic advantages, but it is also about providing the viability of adopting green energy solutions at an industrial scale,” said M P Vijay Kumar CFO, Sify.

Kumar further said that Sify is on track to add 200 MW of data centre capacity in the next four years. “ We are looking at setting up a greenfield project in Hyderabad, which has a large capacity. We have completed the land acquisition. We are evaluating the renewable energy plans for the upcoming facility and looking at cost-benefit analysis as well as the regulatory environment,” he said.

“With the constantly expanding need for world class data center facilities to meet the burgeoning data centric transformation of Indian businesses, we believe that investing in clean energy sources to fuel this transformation is a social imperative,” said Raju Vegesna, chairman, Sify.