AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, is raising $1.4 billion to fund the development of data centers across India. The joint venture secured a green loan from eight international banks, with an initial funding commitment of $875 million that can be extended to $1.4 billion. With a $213 million credit facility signed earlier, AdaniConneX now has access to over $1.6 billion to finance data center projects with up to 1 gigawatt of capacity in the Indian subcontinent.
The successful funding exercise is seen as a testament to the determination of all parties involved to establish sustainable and robust digital infrastructure, setting new industry benchmarks. AdaniConneX CEO Jeyakumar Janakaraj expressed satisfaction with the progress made by the joint venture, which was formed at the peak of the Covid-19 pandemic in 2021. The pandemic fueled demand for e-commerce and cloud-based services, prompting the partners to seize opportunities in the data center industry.
With its first 17 MW data center facility in Chennai already operational, AdaniConneX is expanding its footprint to other cities like Navi Mumbai, Noida, Vizag, and Hyderabad to meet the growing demand for cloud computing capacity in India. Adani, who is the chairman of the Adani Group, is the second richest person in India with a net worth of $68 billion, according to Forbes Asia. His diverse business interests include ports, airports, power generation, and renewable energy, making Adani a key player in India’s economic landscape.
The collaboration between Adani Enterprises and EdgeConneX aims to capitalize on the digital transformation wave sweeping across India and other parts of the world. The joint venture’s focus on expanding data center infrastructure aligns with the increasing reliance on digital technologies in various sectors, including e-commerce, healthcare, education, and entertainment. By investing in state-of-the-art data centers, AdaniConneX seeks to enhance connectivity, security, and efficiency for businesses and consumers alike.
The new data centers being developed by AdaniConneX are expected to provide a significant boost to India’s digital economy, creating opportunities for innovation, job creation, and economic growth. The utilization of green financing further underscores the partners’ commitment to sustainability and environmental responsibility in their business operations. As the demand for data storage and processing continues to rise, the development of modern data centers will play a crucial role in supporting India’s digital ambitions and driving the country’s technological progress.
Overall, the joint venture between Adani Enterprises and EdgeConneX represents a strategic partnership that leverages the strengths and resources of both companies to capitalize on the growing demand for data center services in India. With access to substantial financing and a strong focus on sustainability, AdaniConneX is well-positioned to lead the expansion of India’s digital infrastructure and support the country’s emergence as a key player in the global digital economy.
