AdaniConneX Secures India’s Largest Sustainability-Linked Financing for Data Centre Expansion

• ByStartupStory     |    April 29, 2024

AdaniConneX, a joint venture between Adani Enterprises Ltd. and EdgeConneX, has announced a groundbreaking achievement in the realm of sustainable financing, having secured a substantial investment of $1.44 billion (approximately Rs 11,520 crore) from a consortium of eight prominent global banks. This milestone financing agreement, recognized as India’s largest in the sustainability-linked domain, marks a pivotal moment for the burgeoning data centre industry within the country.

The investment, comprised of an initial commitment of $875 million with potential to extend to $1.44 billion, underscores AdaniConneX’s ambitious plans to spearhead the development of digital infrastructure in India. With Adani Enterprises committing around $1.5 billion towards its data centre venture over the next three years, this financing boost will accelerate the establishment of nine state-of-the-art data centres, collectively boasting a capacity of 1 gigawatt by the year 2030.

AdaniConneX’s CEO, Jeyakumar Janakaraj, expressed enthusiasm regarding the partnership with esteemed international lenders, stating, “This successful exercise is a testament to the collective resolve of the parties to meet the challenges of establishing sustainable and robust digital infrastructure, thereby pushing norms and setting new industry benchmarks.”

The financing arrangement emphasizes AdaniConneX’s steadfast commitment to sustainability, operational excellence, and renewable energy adoption. Leveraging cutting-edge technologies and renewable solutions, the forthcoming data centres aim to minimize ecological impact while optimizing operational efficiency.

This initiative aligns with AdaniConneX’s broader strategy to advance India’s digital growth trajectory and foster economic progress through innovative and eco-conscious infrastructure development.

The consortium of banks involved in this landmark financing includes ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation. Their participation underscores a shared dedication to advancing sustainable business practices and facilitating transformative investments in India’s digital ecosystem.

The execution of definitive agreements with these global banking partners represents a critical step towards realizing AdaniConneX’s vision of pioneering world-class data centres that integrate sustainability at their core.

AdaniConneX’s ambitious construction financing pool now stands at $1.65 billion, building upon the foundation set by their maiden construction facility executed in June 2023. The upcoming data centres in Noida and Hyderabad, complementing the operational centre in Chennai, will be pivotal in meeting the escalating demand for digital services across the region.

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