Adani JV AdaniConneX Bags Financing Of Rs 11,500 Crore To Build Data Centres From 8 Global Banks; Report

AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, has secured India's largest sustainability-linked financing arrangement, boasting a sum of up to $1.44 billion (approximately Rs 11,520 crore).

Adani Enterprises, the flagship entity of the Gautam Adani-led conglomerate, is slated to invest approximately $1.5 billion in its nascent data centre business over the next three years. Collaborating with EdgeConneX, the joint venture envisions the construction of nine data centres with a collective capacity of 1 gigawatt by the year 2030, poised to meet the burgeoning demand for digital services.

A statement released by the company elaborated on the financing arrangement, indicating an initial commitment of $875 million with the potential for extension up to $1.44 billion. This funding surge significantly boosts AdaniConneX's construction financing pool to $1.65 billion, building upon the foundation laid by the maiden construction facility of $213 million established in June 2023.

Despite having only one operational data centre in Chennai thus far, AdaniConneX has made substantial progress, completing nearly two-thirds of the construction at its Noida and Hyderabad facilities. Notably, the forthcoming data centre complexes will harness state-of-the-art technologies and renewable energy solutions to minimize environmental impact while maximizing operational efficiency.

Highlighting the importance of sustainability, AdaniConneX emphasized its dedication to fostering a safety-first culture, achieving world-class Power Usage Effectiveness (PUE) through the adoption of global best practices, and leveraging renewable energy resources. The financing structure incorporates a syndicated guarantee-backed assurance program aligned with the projects' procurement strategy.

Definitive agreements have been inked with eight international lenders, including ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation. This collaboration grants AdaniConneX access to a vast liquidity pool, facilitating the expeditious implementation of portfolio assets in response to escalating demand.

Jeyakumar Janakaraj, CEO of AdaniConneX, hailed the successful financing exercise as a testament to the collective determination to overcome the challenges associated with establishing sustainable and resilient digital infrastructure. He emphasized that construction financing constitutes a pivotal aspect of AdaniConneX's capital management strategy, enabling the delivery of data centre solutions deeply rooted in sustainability and environmental stewardship.

Notably, ING Bank NV and MUFG Bank Ltd functioned as Structuring Banks, while ING Bank NV, MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation assumed the role of Sustainability Coordinators.

Allen & Overy and Saraf & Partners provided legal counsel for the borrowers, while Milbank and Cyril Amarchand Mangaldas represented the lenders, underscoring the comprehensive collaboration underpinning this historic financing arrangement.