The Adani Group is reportedly fast-tracking its $4 billion investment plan to expand its data center business, driven by growing demand from tech giants, particularly due to the increased power needs of AI-driven services. According to a report unnamed sources, this move will also strengthen Adani’s power sector by leveraging the high energy consumption associated with data centers.
Expansion Plans and Capacity Targets
Adani ConneX, a 50:50 joint venture between Adani and the U.S.-based data center operator EdgeConneX, currently operates 17 megawatts (MW) of data center capacity, with an additional 210 MW under development. The group now aims to reach a total capacity of 1 to 1.5 gigawatts (GW) within the next one to two years, significantly speeding up its original five-year plan, the report states.
Focus on AI-Driven Services
Industry insiders reveal that Adani is increasing its investments, estimated at Rs 40 crore per MW, to meet the needs of AI-driven service providers, which require massive computational power. A source noted that the average order size for data center services has surged from 5-10 MW two years ago to 50-100 MW today, reflecting the rapid growth in data consumption.
India’s Data Center Market Outlook
India’s data center market is expected to grow from 700 MW to 4 GW by FY2030, a development that will benefit Adani’s power generation companies, including Adani Power and Adani Green Energy. AI-driven services from tech firms like WhatsApp, Google, and Facebook are reported to use eight to twelve times more power than conventional services, further fueling this sector’s expansion.
