AdaniConneX raises $213 mn to set up data centres in India

AdaniConneX, a 50:50 JV between Adani Enterprises and US-based EdgeConneX (ECX), has secured $213 million in the largest data centre financing deal in India for its under-construction data center asset portfolio of 67 MW in Noida and Chennai. The company raised the fund via senior debt securities, which saw participation from international banks, including ING Bank N.V., Mizuho Bank, MUFG Bank, Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation, AdaniConneX said in a release today.

“The tied-up facility will finance two data centres with an aggregate capacity of 67 MW that includes ‘Chennai 1’ campus with phase 1 of 17 MW and Noida campus of 50 MW,” it said.

The construction facility will finance two data centre projects in Chennai (Tamil Nadu) and Noida (Uttar Pradesh). The ‘Chennai 1’ campus with ‘Phase 1’ 17 MW data center capacity is Tamil Nadu’s first pre-certified IGBC1 Platinum Rated data centre providing customised colocation solutions to enterprise segment. The under-construction Noida campus is being implemented with a 50 MW capacity to support strategic expansion needs of hyperscale customers in India.

The company said that the platform infrastructure financing finalised through the framework agreement with international lenders will institutionalise the development agenda for AdaniConneX. “ING Bank N.V., Mizuho Bank, Ltd., MUFG Bank, Ltd., Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation have committed to the facility,” it added.

ING Bank N.V., Mizuho Bank Ltd., MUFG Bank Ltd., Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation acted as Mandated Lead Arranger, Bookrunner (MLAB). Among other partners, Allen & Overy and Saraf & Partners were the borrower’s counsels. The lenders’ counsels were Clifford Chance and Cyril Amarchand Mangaldas.

“The access to the wide pool of liquidity strengthens AdaniConneX strategy to fast-track the implementation of the under-construction asset portfolio in sync with accelerating demand.”

As per the company, the ground-breaking transaction will pave the way for implementation of sustainable digital infrastructure platform with pan-India roll-out. “The financing embarks on AdaniConneX capital management plan to deliver the critical digital infrastructure to empower Digital India with 1 GW of data center capacity by 2030,” it said.

“The construction facility is the key ingredient of AdaniConneX capital management plan, providing the pathway for us to deliver on-time a reliable and sustainable data center capacity of 1 GW by 2030,” said Jeyakumar Janakaraj, CEO of AdaniConneX. “The achievement marks a significant milestone in developing this transformative initiative, which is set to revolutionize the digital infrastructure in India,” he added.

The release stated that Adani’s expertise in full-stack energy management, renewable power, and project development, combined with EdgeConneX extensive data center expertise and industry leading technology solutions, will bring a digital revolution in the sector.

India is one of the fastest-growing data centre markets in the world, and as per CRISIL estimates the data centre capacity in India is expected to double from 870 MW in FY22 to 1,700-1,800 MW by FY25. To address the growing need for reliable IT infrastructure, AdaniConneX is investing capital to build a 1 GW green data centre platform, enabled by hyperscale to hyperlocal data center investments across the country.

Last month, billionaire Gautam Adani-led Adani Group had announced that it would develop an integrated data centre and technology business park in Vizag. The facility will host a 300 MW data center capacity facility, which will be powered with up to 100% renewable energy. It will also be connected with terrestrial and submarine infrastructure to help the deployment of cloud and emerging technologies in the region. The integrated facility will be one of the largest hyperscale data centres in India and will also house a skill development center.

After infrastructure, defence, realty and FMCG, the ports-to-energy conglomerate forayed into the digital infrastructure space by forming a JV with US-based EdgeConneX. The company is eyeing hyperscale data centres in six Indian cities -- Chennai, Navi Mumbai, Noida-Delhi, Vizag, and Hyderabad. Last year, the group had incorporated a new data centre subsidiary in Mumbai.