AdaniConneX Secures USD 1.44 Bn from 8 Global Banks to Build Data Centers With this funding, AdaniConneX's construction financing pool rises to USD 1.65 billion, adding to an earlier facility of USD 213 million as of June 2023.
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AdaniConneX, a joint venture between Adani Enterprises and EdgeConneX, announced that it has secured India's largest sustainability-linked financing of up to 1.44 billion, with an initial commitment of USD 875 million.
With this funding, AdaniConneX's construction financing pool rises to USD 1.65 billion, adding to an earlier facility of USD 213 million as of June 2023.
The money will be used to construct data center facilities using advanced technology and renewable energy sources to reduce environmental effects and maximise efficiency. AdaniConneX has demonstrated its dedication to sustainability and energy efficiency in its operations with this step.
A syndicated guarantee-backed assurance program has been put in place by the corporation in order to support its project procurement strategy. Eight international banks—ING Bank NV, Intesa Sanpaolo, KfW IPEX, MUFG Bank Ltd, Natixis, Standard Chartered Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation—have signed definitive agreements to support this program.
While Sumitomo Mitsui Banking Corporation, ING Bank NV, and MUFG Bank Ltd served as sustainability coordinators, ING Bank NV and MUFG Bank Ltd served as structuring banks.
The borrower's counsels were Allen & Overy and Saraf & Partners. Milbank and Cyril Amarchand Mangaldas were the lenders' counsels.
Jeyakumar Janakaraj, CEO, AdaniConneX, said, "This financial initiative is pivotal in our strategy to expand robust and sustainable digital infrastructure, setting new industry standards, and enhancing India's digital growth." He emphasised the strategic role of construction financing in achieving sustainable data center solutions.
Over the next three years, Adani Enterprises Ltd plans to invest about USD 1.5 billion in its nascent data center business. In order to supply infrastructure for the rapidly increasing demand for digital services, its joint venture with EdgeConnex intends to construct nine data centers with a combined capacity of one gigawatt by 2030.
AdaniConnex has almost completed two-thirds of the development at its Noida and Hyderabad facilities, although it now only has one data center in operation in Chennai. Modern technology and sustainable energy sources will be combined in these soon-to-be data centers to minimise environmental effects and increase operational effectiveness.
