AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, has successfully secured India’s largest sustainability-linked financing arrangement, raising a substantial USD 1.44 billion (approximately Rs 11,520 crore) to fuel the expansion of its data center operations.
Adani Enterprises, spearheaded by billionaire Gautam Adani, is poised to invest approximately USD 1.5 billion in its burgeoning data centre business over the next three years. Collaborating with EdgeConneX, the joint venture aims to construct nine state-of-the-art data centres with a combined capacity of 1 gigawatt by 2030, catering to the surging demand for digital services.
The financing deal encompasses an initial commitment of USD 875 million, with provisions for extending the commitment up to USD 1.44 billion through an accordion feature. This transaction significantly enhances AdaniConneX’s construction financing pool to USD 1.65 billion, building upon its inaugural construction facility of USD 213 million established in June 2023.
While AdaniConneX currently operates a single data centre in Chennai, substantial progress has been made in the construction of facilities in Noida and Hyderabad, with completion nearing two-thirds.
Distinguished by its commitment to sustainability, AdaniConneX’s upcoming data centres will leverage cutting-edge technologies and renewable energy solutions to minimize ecological impact while optimizing operational efficiency. The financing underscores AdaniConneX’s dedication to fostering a safety-first culture and achieving world-class Power Usage Effectiveness (PUE) through the adoption of global best practices and renewable energy resources.
A notable feature of the financing arrangement is the innovative syndicated guarantee-backed assurance program aligned with the projects’ procurement strategy. Definitive agreements have been inked with eight esteemed international lenders, including ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation.
This transformative financing approach exemplifies AdaniConneX’s commitment to building sustainable digital infrastructure, poised to drive economic progress and propel India’s digital growth trajectory. CEO Jeyakumar Janakaraj lauded the collaborative efforts of all parties involved, emphasizing the significance of establishing a robust digital infrastructure that adheres to sustainability principles and sets new industry benchmarks.
