AdaniConneX secures financing to build data centers

AdaniConneX, a joint venture between Adani Enterprises and private data center operator EdgeConneX has secured up to $1.44 billion to build data centers. Billionaire Gautam Adani-led Adani Enterprises Ltd is investing around $1.5 billion on its fledgling data center business in the next three years. 

The “financing has an initial commitment of USD 875 million, with an accordion feature to extend commitment up to USD 1.44 billion,” said AdaniConneX in a statement. 

“The transaction elevates AdaniConneX’s construction financing pool to USD 1.65 billion, building on the maiden construction facility of USD 213 million executed in June 2023,” it added.

The joint venture plans to build nine data centers with a total capacity of 1 gigawatt by 2030 to provide infrastructure for the booming digital services demand. 

For the loans, agreements were executed with eight international lenders- ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation.

“Access to a wide pool of liquidity strengthens the company’s strategy to fast-track the implementation of portfolio assets in sync with accelerating demand,” said the company.

Further, AdaniConneX said: “The upcoming data center facilities will employ state-of-the-art technologies and renewable energy solutions to minimise the ecological footprint while optimising 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,” it added. 

“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 AdaniConneX CEO Jeyakumar Janakaraj. “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.”

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