InvestorQ : Can you tell me about the data centre plans recently laid out by the Adani group?
vidhya Laxmi made post

Can you tell me about the data centre plans recently laid out by the Adani group?

sarah Leo answered.
2 months ago

The Adani group has been known for two things viz. conceiving in terms of size and then scaling up the tempo rapidly. It is in this context that their latest plan to set up 1000 MW (megawatts) of data centre capacity over next 10 years fits in. Let us first put this in context. In the data centre business, the capacity is measured by the power consumed by the data centre. Today, the total data centre capacity in India is about 450 MW, so what Adani is planning in next 10 years is twice the current India data centre capacity.

A separate company has been formed for the same by the name of AdaniConneX. The bet that Adani is making is that over the next 10 years much of the business would move to the cloud and hence third party data centres will be the norm. That trend is already visible. In the first phase, AdaniConneX will set up 7 data centres in metros like Mumbai, Chennai, Hyderabad, Delhi, Bengaluru and Pune. This would be completed in the first phase over 3 years and will create data centre capacity equivalent to 450 MW, current Indian capacity.

India’s existing 450 MW data centre capacity is valued at $11 billion, so the full AdaniConneX capacity should be valued closer to $24.50 billion. Once the first phase is completed, the second phase will entail setting up of 550 MW of data centre capacity across the tier-2 and tier-3 towns. Mumbai and Chennai will be connected to the undersea cable network for robust data centre offering. AdaniConneX is a 50:50 JV between Adani Enterprises and the US-based EdgeConneX. Adani group expects data centres to position India as a knowledge hub that hosts critical data for global companies.