The Adani Group is reportedly accelerating its USD 4 billion investment plan aimed at expanding its data center business. This decision comes in response to a surge in demand from technology giants observed over the last six months, particularly due to rising power constraints associated with AI-driven services. The move aims to enhance the group's power sector by leveraging the high energy requirements associated with data center services, according to a report by Mint, which cites two unnamed sources.
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Expansion Plans and Capacity Goals
Adani ConneX, a 50:50 joint venture with the Virginia-based private data center operator EdgeConneX, currently operates 17 megawatts (MW) of data center capacity and has an additional 210 MW under various stages of construction. The group now plans to achieve a total capacity of 1 to 1.5 gigawatts (GW) within the next one to two years, significantly accelerating its timeline from an initial five-year goal, according to the report.
Focus on AI-Driven Computational Needs
Industry insiders reveal that the Adani Group is preparing to allocate additional resources to its data center business, with current investment estimates at around Rs 40 crore per MW. This investment will be crucial to support AI-driven service companies, which require immense computational power.
"The average order size for data center services has dramatically increased from 5-10 MW two years ago to 50-100 MW now," a source familiar with the matter said, highlighting the growth in data requirements. The group, which currently holds 2.5 percent of India's data center market share, now receives orders of 50-100 MW, up from an average of 5-10 MW two years ago due to increased demand, according to multiple reports.
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India's Data Center Industry
India's data center market is projected to grow from 700 MW to 4 GW by FY30, and this expansion is expected to bolster Adani's power generation sectors, including Adani Power and Adani Green Energy, as AI-driven services from firms like WhatsApp, Google, and Facebook demand eight to twelve times more power than standard computational needs.
