Adani Group Pledges $100B for AI Data Centers
India's Adani Group announced a plan to invest $100 billion by 2035 to build a network of renewable-powered artificial intelligence data centers. The conglomerate expects this initiative to catalyze an additional $150 billion in related investments. The goal is to create a $250 billion AI and data infrastructure ecosystem in the country.
- This initiative builds on existing strategic partnerships, including a joint venture with Google to build a gigawatt-scale AI data center campus in Visakhapatnam and further projects with Microsoft across Hyderabad and Pune. The group is also expanding its data center collaboration with Flipkart to support e-commerce and high-performance computing workloads. - The data centers will be powered by the Adani Group's own renewable energy assets, primarily the 30 GW Khavda renewable energy park. A separate $55 billion is committed to expanding the company's renewable energy portfolio, which includes building one of the world's largest battery energy storage systems. - The plan aims to scale Adani's data center capacity to 5 gigawatts, building upon the existing 2-gigawatt platform operated by AdaniConneX, a 50:50 joint venture with data center specialist EdgeConneX. - This investment enters a rapidly growing market, with projections for the India data center market to reach between $10.09 billion and $27.2 billion by the early 2030s, up from approximately $4.75 billion to $10.48 billion in 2024-2025. The market for AI-optimized data centers in India specifically is forecast to grow at a CAGR of over 21% between 2025 and 2030. - To mitigate supply chain risks, the strategy includes co-investing in domestic manufacturing partnerships for critical infrastructure such as transformers, advanced power electronics, and thermal management solutions. - A portion of the new facilities' GPU capacity will be reserved for Indian AI startups and research institutions, aiming to foster a domestic AI ecosystem. - This capital-intensive project follows a period of aggressive M&A activity for the Adani Group, which has completed 33 acquisitions worth approximately ₹80,000 crore since early 2023 in sectors including ports, cement, and power.
