GPUs and data centre equipment notified as financial products under IFSCA Act for leasing in IFSCs

Key facts

• The Government has notified Graphics Processing Units (GPUs) and connected data centre equipment as equipment for leasing purposes under the International Financial Services Centres Authority (IFSCA) Act, 2019, enabling their recognition as financial products in International Financial Services Centres (IFSCs).
• The notification was issued by IFSCA under Section 12 of the IFSCA Act, 2019, permitting entities in IFSCs to lease GPUs and related equipment under operating and hybrid lease models.
• The scope covers AI servers, rack-scale AI systems, processors and accelerators, server power supply units, network switches, interconnect equipment, and related parts and accessories.
• Earlier, IFSCA had released a consultation paper proposing that operating leases, including hybrid structures combining operating and financial leases, of GPUs and connected data centre equipment be notified as financial products to attract leasing activity to GIFT City IFSC.