AdaniConnex raises $1.44 billion for data center business

To accelerate the development of digital infrastructure in India, AdaniConnex, a joint venture between Adani Enterprises and EdgeConnex, on Sunday said it has set up the country's largest sustainability linked financing to raise $1.44 billion. This transaction increases AdaniConnex's construction financing pool to $1.65 billion. Earlier in June last year, the first manufacturing facility worth $213 million was built.

AdaniConnex CEO Jaykumar Janakraj said, "This successful exercise is a testament to the collective resolve of both parties to meet the challenges of establishing sustainable and robust digital infrastructure, push norms forward and set new industry benchmarks."

The data center facilities to be built will use state-of-the-art technology and renewable energy solutions to minimize the ecological footprint while optimizing operational efficiency.

The initial commitment of the new financing is $875 million, which is being expanded to $1.44 billion. “Construction financing is a key element of the AdaniConnex capital management plan, enabling us to provide data center solutions firmly rooted in sustainable and environmental stewardship,” Janakraj said.

According to the company, "A key feature of the data center facility is the syndicated guarantee-backed assurance program tailored to the projects' strategy, which is unique in its kind." The company said that eight international lenders - ING Bank N.V., Intesa Sanpaolo, “Agreements have been signed with KfW IPEX, MUFG Bank Limited, Natixis, Standard Chartered Bank, Societe Generale and Sumitomo Mitsui Banking Corporation.”

AdaniConnex aims to leverage the capabilities of Adani Group, one of the largest private data center operators, and Edge Connex to build a 1 gigawatt data center infrastructure platform that is green.