Adani Enterprises (AEL), led by billionaire Gautam Adani, is set to embark on a significant expansion in its data centre business, according to reports. The expansion plan is spearheaded by AdaniConneX, a joint venture between AEL and Sweden’s EQT-owned EdgeConneX.
The joint venture aims to invest a staggering $5 billion over the next five years, with more than half of this investment possibly allocated within the current year. Notably, promoter equity infusions are anticipated to contribute approximately a quarter of the total investment.
By 2030, AdaniConneX envisions developing a data centre capacity of 1 GW, marking a substantial leap in its operations. To fuel this ambitious growth trajectory, the company is currently engaged in discussions with various international banks to secure an offshore loan ranging from $1.2 to $1.4 billion. The transaction is expected to be finalized in the upcoming weeks, as per the report.
While AdaniConneX presently operates a single data centre in Chennai, significant progress has been made in the construction of facilities in Noida and Hyderabad, with almost two-thirds of the work completed, according to an investor presentation dated November 2. Additionally, development for phase 2 in Chennai is underway, while land acquisition processes are in progress for facilities in Hyderabad and Navi Mumbai.
This strategic move to expand the data centre business follows recent regulatory developments. Adani Group received clearance from the markets regulator, SEBI, after an investigation that dismissed allegations made by the US short-seller Hindenburg. The Supreme Court also ruled against considering a report by the OCCRP, funded by billionaire George Soros and others, as a basis for doubting SEBI’s investigation into the Hindenburg case.
In response to these regulatory developments, the Adani Group denounced the OCCRP report as a ‘malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive.’
