Data Center emerging as next big biz, Adani fast-tracks $4 billion investment
Subscribe to enjoy similar stories. The Adani Group has put on fast-forward a $4-billion plan to expand its data centre business, according to two persons with direct knowledge of the matter. The objective is to capitalize on a surge in demand for data centre services from technology giants, and also give its power business a boost by capturing the immense power demand for these services.
Adani ConneX Pvt. Ltd, a joint venture between Adani Enterprises Ltd. and Virginia-based EdgeConneX, currently has 17 MW operational and 210 MW under-construction projects.
With demand for its services skyrocketing, the group plans to achieve data-centre scale of 1-1.5 GW within one to two years, from the earlier target of five years, the two people cited above said on condition of anonymity. “Adani will invest another $4 billion to reach this 1 GW. Based on present economics, investment per MW is around ₹40 crore," the first person said.
According to the people cited above, the data centre demand is growing so quickly that the group may slow down investments for some other businesses and use the funds to invest more in the data centre business as a part of the strategy shift. “The orders or requirement (for data centre services) that used to be on average 5-10 MW two years ago, are now 50-100 MW," said the first person, adding that Adani Group today has only 2.5% share of India’s data centre market, which is currently 700 MW and is expected to become 4 GW by FY30. “AdaniConneX has an order visibility of 1.5-2 GW.
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