GPU leasing Proposed to join Aircraft, Ships and Oilfield equipment as a GIFT IFSC Financial Product

Overview

• The International Financial Services Centres Authority (IFSCA) has proposed allowing the leasing of Graphics Processing Units (GPUs) and Connected Data Centre Equipment as a financial product at GIFT City, following its earlier enablement of operating leases for aircraft, ships and oilfield equipment.
• The proposal seeks to extend GIFT IFSC's growing asset-leasing ecosystem already covering aircraft, ships and oilfield equipment—into the rapidly expanding field of AI and data-centre infrastructure.
• The move is designed to support India’s AI infrastructure build-out, where demand for compute power is expected to rise sharply and leasing could reduce upfront capital strain.

What Does IFSCA Propose?

• The proposal is based on the Government of India notification S.O. 5199(E) dated December 14, 2021, which permits the operating lease, including hybrid structures combining operating and financial leases, of products or equipment specified by IFSCA to be recognised as a financial product.
• Such leasing activity is permitted under the IFSCA (Finance Company) Regulations, 2021. IFSCA now proposes to bring “GPU and connected data centre equipment” within the same leasing framework.
• Under the proposed structure, such equipment may be held by an IFSC financial institution either on an ownership basis; or through a lease-in, lease-out model.

GPU & CONNECTED DATA CENTRE EQUIPMENT

• The proposed notification adopts a technology-neutral approach and is intended to cover accelerated computing infrastructure such as:
• Graphics Processing Units (GPUs);
• General-Purpose Graphics Processing Units (GPGPUs);
• Artificial Intelligence accelerators;
• Tensor Processing Units (TPUs);
• Neural Processing Units (NPUs);
• GPU and AI servers;
• rack-scale AI systems;
• Storage equipment;
• Networking and interconnect equipment;
• Server power supply units;
• parts and accessories forming an integral part of such systems.
• The technology-neutral drafting is intended to accommodate successive generations of accelerated computing technologies as the underlying technology evolves.

WHY THIS MATTERS

• IFSCA's background note records that the global GPU market stood at approximately USD 65 billion in 2024 and is projected at USD 400–500 billion by 2030, with global data centre capital expenditure of approximately USD 6.7 trillion estimated by 2030.
• India holds less than 5% of global AI-optimised compute power. Deployment of 650,000–700,000 GPUs in Indian data centres over the next five years is anticipated, representing an estimated USD 23 billion investment opportunity.
• At present, India is also substantially import-dependent for this class of equipment.
• IndiaAI Mission’s public compute infrastructure mainly serves startups, researchers and public institutions, while commercial AI infrastructure demand must be market-funded. IFSCA views leasing as a suitable financing mechanism to help bridge this requirement.

Conclusion

• IFSCA's proposal marks an important step in expanding GIFT IFSC's leasing ecosystem from traditional high-value assets into digital and AI infrastructure.
• With GPUs becoming critical infrastructure for artificial intelligence, cloud computing and high-performance computing, creating a dedicated leasing framework could help address high capital costs, rapid technology-refresh cycles and residual-value risks associated with such equipment.
• If implemented, the framework could expand cross-border asset financing from GIFT IFSC and support India’s growing AI infrastructure needs. The proposal is currently under public consultation and remains subject to IFSCA’s final notification and leasing framework.