According to an ET report, AdaniConneX aims to develop 1 GW of data centre capacity before 2030 and is in discussions with several international banks to secure $1.2-1.4 billion in offshore loans to support its growth plans.The loan is expected to be finalized within the next couple of weeks. Adani Group CFO, Jugeshinder Singh, had previously mentioned a $1.5-billion capital expenditure plan spread over three years, starting from FY24.
The expansion of the data centre business comes amidst rapid growth in AI-led businesses and follows a Supreme Court ruling that cleared the Adani Group of the need for additional investigation after allegations made by US-based Hindenburg Research.
Data The New Oil
The offshore loan, likely to have a five-year maturity, involves top global lenders such as Standard Chartered Bank, ING Bank, Sumitomo Mitsui Banking Corporation (SMBC), and MUFG Bank, sources told the financial daily.
AdaniConneX is actively seeking to increase its debt financing to support the expansion of its data center operations. According to a source, the company is particularly focused on its facilities in Noida, Hyderabad, and the second phase of the Chennai data center, where significant progress has been made.
Also Read | Significant milestone! Gautam Adani says Adani Green is now India’s first “das hazari” in renewable energy space
The source stated, “They (AdaniConneX) are looking to scale up debt financing in order to expand operations in the data centres, especially as the Noida and Hyderabad facilities have seen significant work, as has the second phase of the Chennai data centre.” Currently, AdaniConneX has an operational capacity of 17 MW in its Chennai facility.
AdaniConneX has also partnered with global technology giants for long-term contracts ranging from 5 to 15 years to support its aggressive growth targets. In June 2023, the company raised $213 million through a debt facility to finance the construction of its data centre portfolio in Noida and Chennai. Additionally, in August, AdaniConnex signed agreements to acquire two wholly owned subsidiaries of Adani Power for Rs 540 crore.
India’s data centre industry is expected to double in the next three years, from 0.9 Gigawatts (GW) in 2023 to 2 GW in 2026, driven by data localisation requirements. Despite generating 20% of global data, India currently accounts for only 3% of global data centre capacity. The additional capacity is expected to require a capital expenditure of Rs 50,000 crore over the next three years.
AdaniConneX’s data centres are located in various cities across India, including Chennai, Noida, Mumbai, Pune, and Vizag. The company’s Chennai 1 campus provides colocation solutions to enterprises, while the Noida data centre is being established with a 50 MW capacity to support the strategic expansion needs of hyperscale customers. The Chennai data centre, which began operations in 2022, aims to scale up to 33 MW.