AdaniConneX secures sustainability-linked $1.44 bn financing to build data centers

AdaniConneX, a 50:50 joint venture between Adani Enterprises and EdgeConneX, secured India’s largest sustainability-linked financing arrangement, raising up to $1.44 billion (approximately ₹12,000 crore) to build data center facilities, the company said. 

The financing has an initial commitment of $875 million, with an accordion feature to extend commitment up to $1.44 billion. The transaction elevates AdaniConneX’s construction financing pool to $1.65 billion, building on the maiden construction facility of $213 million executed in June 2023, AdaniConneX said.. 

Definitive agreements have been executed with eight international lenders—ING Bank N.V., Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd., Natixis, Standard Chartered Bank, Société Générale, and Sumitomo Mitsui Banking Corporation.

AdaniConneX is a joint venture equally owned by Adani Enterprises and EdgeConneX to build data centers in India. Announced in February 2021, the JV plans to build an environmentally and socially conscious 1 gigawatt data center infrastructure platform by 2030, leveraging the complementary capacity of the Adani Group and EdgeConneX. While Adani Enterprises is one of the largest infrastructure development companies in India, EdgeConneX is a leading technology driven global data center provider with 50 facilities in over 30 markets. 

The upcoming data center facilities will employ state-of-the-art technologies and renewable energy solutions to minimize the ecological footprint while optimizing operational efficiency, AdaniConneX said in a press release. 

The sustainability-linked financing reinforces AdaniConneX’s commitment towards driving a safety-first culture, delivering world-class power usage effectiveness (PUE) by adopting global best practices, and leveraging renewable energy resources, it added. 

“This successful exercise is a testament to the collective resolve of the parties to meet the challenges of establishing sustainable and robust digital infrastructure, thereby pushing norms and setting new industry benchmarks,” said Jeyakumar Janakaraj, the chief executive officer of AdaniConneX.

“Construction financing is a core element of the AdaniConneX capital management plan, enabling us to deliver a data center solution firmly rooted in sustainability and environmental stewardship. We are delighted to embark on this journey alongside our esteemed international banking partners,” Janakaraj added.