IFSCA ENABLES GPU AND DATA CENTRE EQUIPMENT LEASING IN GIFT CITY IFSC

OVERVIEW

• The International Financial Services Centres Authority (IFSCA), vide its notification dated October 22, 2026 (“Notification”), has specified Graphics Processing Units (“GPUs”) and connected data centre equipment as eligible equipment for the purposes of the Central Government’s notification recognising operating leases as financial products.
• The Notification is issued under Central Government notification S.O. 5199(E) dated December 14, 2021, read with section 12 of the IFSCA Act, 2019. This Notification follows IFSCA’s consultation paper dated August 18, 2026.
• The 2021 notification recognises operating leases, including any hybrid of operating and financial leases, of products or equipment specified by IFSCA as financial products. The new Notification brings GPUs and connected data centre equipment within that framework.
• The initiative creates opportunities for financing AI computing infrastructure and supporting the growing demand for advanced data processing capabilities.

ELIGIBLE EQUIPMENT

1. CONNECTED DATA CENTRE EQUIPMENT:

• Integrated circuits, meaning processors and controllers, whether or not combined with memories, converters, logic, amplifier, clock or timing circuits.
• Servers, storage, networking, interconnect and power equipment, including server power supply units and other equipment needed to deploy or operate the hardware in a data centre.
• Parts and accessories of the above items.
• Two key limits: The equipment must be dedicated to, and directly associated with, GPUs. and Equipment that serves the data centre facility as a whole is excluded.

2. GRAPHICS PROCESSING UNITS

• GPUs, whether or not they contain storage, input or output units in the same housing, including allied parts and accessories.
• AI and accelerated computing hardware, including general-purpose GPUs, AI accelerators, tensor or neural processing units, and comparable computing or acceleration technologies.
• Rack-scale AI systems, including compute trays, switch trays, CPUs and input/output units integrated within a single rack, whether or not supplied or invoiced as one integrated system.

NEW AVENUES FOR TECHNOLOGY INFRASTRUCTURE LEASING

• Lessors at GIFT IFSC can now offer operating and hybrid leases of AI compute hardware, not only aircraft, ships and engines.
• Eligible lessors in GIFT IFSC may undertake operating and hybrid leasing of specified GPUs and connected data centre equipment, subject to applicable IFSCA regulations.

CONCLUSION

• IFSCA's notification represents an important step towards expanding the scope of financial leasing activities in GIFT City IFSC.
• By specifying GPUs and connected data centre equipment as eligible equipment, the Authority has created a regulatory basis for operating lease structures involving advanced computing infrastructure.
• The development could attract leasing companies, technology infrastructure providers and international participants seeking to finance AI-related equipment.
• It also strengthens the potential role of GIFT City IFSC in supporting technology-driven financial services and digital infrastructure investment.