Adani-Backed JV to Fund Indian Data Centers with $1.4B

AdaniConneX, a joint venture between Gautam Adani's Adanai Enterprises and U.S.-based EdgeConneX, aims to secure $1.4 billion in funding to develop data centers across India, the world's most populous country. A syndicate of eight international banks, including Japan's MUFG and Sumitomo Mitsui Banking, as well as ING Bank, Intesa Sanpaolo, KfW IPEX, Natixis, Standard Chartered Bank, and Societe Generale, secured this significant financial undertaking via a green loan.

The partners announced in a public statement over the weekend that the lenders have initially committed to providing $875 million with an extension option up to $1.4 billion. The total financing available to AdaniConneX would thus exceed $1.6 billion when considering its existing credit facility worth $213 million signed last June.

This substantial amount will be used towards developing data centers capable of hosting up to 1 gigawatt of capacity spread across various locations on the Indian subcontinent.

In response to this successful fundraising exercise, Jeyakumar Janakaraj, CEO of AdaniConneX, said: "This successful exercise is a testament to the collective resolve of the parties involved in meeting challenges that involve establishing sustainable and robust digital infrastructure." He further added that this initiative pushes industry norms while setting new benchmarks.

During the peak COVID-19 pandemic period in 2021, which saw heightened demand for e-commerce services along with other cloud-based solutions due to global lockdowns, Adani Enterprises teamed up with EdgeConneX, a renowned data center developer, to form a 50/50 joint venture partnership.

Their first project included opening their inaugural 17 MW data center facility based out of Chennai (Eastern India) in November 2022, which they plan on scaling up until it reaches 33 MW capacity.

To keep up with the ever-increasing demand for cloud computing services, AdaniConneX has started to build additional data centers in other major Indian cities, including Navi Mumbai, Noida, Vizag, and Hyderabad.

Gautam Adani is the chairman of the diversified business conglomerate Adani Group, which boasts a wide range of business interests spanning from ports and airports to power generation and renewable energy sector investments. According to Forbes Asia's list from last October, Gautam Adani's estimated net worth of $68 billion places him second among India's 100 richest individuals.

The investment by AdaniConneX in developing digital infrastructure across India indicates their commitment to meeting the growing needs of digitalization within the country while also significantly contributing towards creating a robust and sustainable future for all stakeholders involved in this rapidly evolving industry.