AdaniConneX, a partnership between Adani Enterprises and EdgeConneX, intends to construct a 1 GW data center. The joint venture, equally owned by Adani Enterprises and EdgeConneX from the US, revealed on Sunday that it has secured funding of up to $1.44 billion (~11,520 crore) for its forthcoming eco-friendly data centers.
The financing comprises an initial commitment of $875 million, with the option to extend the commitment to $1.44 billion through an accordion feature. This transaction boosts AdaniConneX’s construction financing pool to $1.65 billion, following the initial construction facility of $213 million established in June 2023, as stated by the company.
“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,” said Jeyakumar Janakaraj, CEO of AdaniConneX.
“Construction financing is a core element of the AdaniConneX capital management plan, enabling us to deliver a data center solution firmly rooted in sustainability and environmental stewardship. We are delighted to embark on this journey alongside our esteemed international banking partners,” he said.
The upcoming data center facilities will integrate cutting-edge technologies and renewable energy solutions to minimize their ecological impact while maximizing operational efficiency. AdaniConneX emphasized that the sustainability-linked financing underscores its dedication to fostering a safety-first culture, achieving world-class power usage effectiveness (PUE) through the adoption of global best practices, and harnessing renewable energy sources.
This new facility is positioned as a key component of a syndicated guarantee-backed assurance program aligned with the projects’ procurement strategy. The company has inked definitive agreements with eight international lenders, including ING Bank N.V, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation.
Access to a broad pool of liquidity strengthens the company’s strategy to expedite the implementation of portfolio assets in line with increasing demand. This innovative approach to financing represents a significant stride towards constructing sustainable digital infrastructure, which is poised to drive economic advancement and accelerate India’s digital growth.
AdaniConneX intends to establish a socially and environmentally aware data center infrastructure platform, boasting a capacity of one gigawatt (GW). This initiative will harness the synergistic capabilities of Adani Group, India’s leading infrastructure entity, and EdgeConneX, a prominent private operator in the data center industry.
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