Adani Group to Invest $10 Billion in Data Centers Amid AI Boom

The Adani Group has announced plans to significantly expand its data center investments, committing $10 billion to meet the surging demand driven by artificial intelligence applications. This strategic move underscores the group’s ambition to strengthen its presence in the rapidly growing data center industry.

Key highlights of the announcement:
- The investment will focus on scaling up Adani ConneX, a joint venture between Adani Enterprises Ltd and Virginia-based EdgeConneX, which specializes in data center solutions.
- The expansion aims to increase operational capacity from the current 17 MW to 1-1.5 GW within the next two years, accelerating the timeline from the earlier target of five years.
- AI-driven services, including those from tech giants like WhatsApp, Google, and Facebook, are fueling demand for high-grade data centers, which consume significantly more power than traditional computational needs.
- The initiative is expected to benefit Adani’s power generation businesses, including Adani Power Ltd and Adani Green Energy Ltd, as power accounts for 60 percent of a data center’s operational costs.

This development highlights the Adani Group’s commitment to leveraging emerging technologies and addressing the growing need for advanced data infrastructure in India and beyond.

Sources: Hindustan Times, Bloomberg News, Business Standard, Mint.