AdaniConneX raises $1.44 bn to set up 9 data centres

AdaniConneX, a partnership between Adani Enterprises and EdgeConneX, is constructing data centres and has finalised India's largest sustainability-linked financing deal, raising up to $1.44 billion (approximately ₹12,015 crore), the company states in an exchange filing.

Adani Enterprises Ltd, the flagship company of Gautam Adani's conglomerate, plans to invest in its nascent data centre venture over the next three years. Teaming up with EdgeConnex, they aim to establish nine data centres by 2030, collectively capable of handling 1 gigawatt (GW), catering to the escalating demand for digital services.

As per the company's announcement, the financing initially secures $875 million, with an option to extend it to $1.44 billion. This brings AdaniConneX's construction financing to $1.65 billion, building on their earlier $213 million facility from June 2023.

AdaniConneX, presently with one operational data centre in Chennai, is progressing with construction in Noida and Hyderabad. Their upcoming facilities will integrate advanced technologies and green energy solutions to reduce environmental impact and enhance operational efficiency.

“The sustainability-linked financing reinforces AdaniConneX’s commitment towards driving a safety-first culture, delivering world-class Power Usage Effectiveness (PUE) by adopting global best practices, and leveraging renewable energy resources,” the company states.

A significant aspect of this financing is a syndicated guarantee-backed assurance program aligned with procurement strategies. Eight international lenders—ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation—have finalised definitive agreements.

This strategic financing approach is crucial for establishing sustainable digital infrastructure, driving economic growth, and advancing India's digital landscape.

Jeyakumar Janakaraj, CEO, AdaniConneX says, “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. Construction financing is a core element of the AdaniConneX capital management plan, enabling us to deliver a data centre solution firmly rooted in sustainability and environmental stewardship.”

“ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale and Sumitomo Mitsui Banking Corporation acted as Mandated Lead Arrangers. ING Bank N.V. and MUFG Bank Ltd acted as Structuring Banks whereas ING Bank N.V., MUFG Bank Ltd and Sumitomo Mitsui Banking Corporation acted as Sustainability Co-ordinators. Allen & Overy and Saraf & Partners were the borrower’s counsels. The lenders’ counsels were Milbank and Cyril Amarchand Mangaldas,” the company adds.