AdaniConneX Sets $1.44 Billion Financing Framework For Construction Of Data Centres For "Robust Digital Infrastructure"

AdaniConneX has initiated India's most extensive sustainability-linked data centre financing endeavor, aiming to secure up to $1.44 billion.

AdaniConneX is a 50:50 joint venture of Adani Group and EdgeConneX, established with a goal of developing a 1 GW national data center platform.

According to a press release on Sunday (28 April), the initial commitment for this financing was $875 million, with an option to extend it up to $1.44 billion.

This initiative amplifies AdaniConneX's construction funding capacity to $1.65 billion, building upon its inaugural construction facility of $213 million established in June 2023.

The forthcoming data center facilities will integrate cutting-edge technologies and renewable energy solutions to mitigate environmental impact while enhancing operational efficiency.

The press release disclosed that definitive agreements have been signed with eight global lenders, including ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation.

Jeyakumar Janakaraj, CEO of AdaniConneX, called it "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." 

Calling construction financing "a core element of the AdaniConneX capital management plan", he reiterated delivering a data centre solution firmly rooted in sustainability and environmental stewardship with international banking partners.

ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation served as Mandated Lead Arrangers.

ING Bank N.V. and MUFG Bank Ltd. played roles as Structuring Banks, while ING Bank N.V., MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation served as Sustainability Coordinators.

Allen and Overy and Saraf and Partners acted as the borrower's counsels, while Milbank and Cyril Amarchand Mangaldas served as counsels for the lenders.

The company has outlined plans to construct nine data centres with a collective capacity of 1 gigawatt by the year 2030 and aims to cater to the escalating demand for digital services in India.

AdaniConnex has only one operational data centre in Chennai so far and has almost completed the construction in the Noida and Hyderabad facilities.