India’s Adani Group is planning to invest US$10 billion to develop hyperscale data centers across the country as per a report by Bloomberg. The publication citing unnamed sources said that the move was in response to the burgeoning demand created by the advent of Artificial Intelligence (AI).
The conglomerate, that engages in a wide variety of businesses ranging from airports to transportation and logistics to energy and utilities, has reportedly identified four different states as the potential locations for two data centers with a combined capacity of 2GW. This appears to be along the lines of its various agreements with different state governments.
Readers would recall that in January 2024, Adani Enterprises Ltd., a part of the wider Adani Group, inked a Memorandum of Understanding (MoU) with the government of Maharashtra to invest Rs 50,000 crores (US$ 6 Billion approx.) to build a 1GW data center in the western Indian state. The MoU was signed in the presence of Adani Group Chairman Gautam Adani and Maharashtra Chief Minister Eknath Shinde during the ongoing World Economic Forum (WEF) at Davos, Switzerland.
This announcement came close at the heels of a similar MoU inked with the southern Indian state of Telangana, where Adani will invest over Rs 5,000 (US$ 600 Million approx.) crore in a 100MW data center, which would be powered by renewable energy, over the coming 5-7 years.
Adani Group’s data center business is under AdaniconneX, a joint venture between Adani Enterprises Ltd and EdgeConneX, is a hyperscale data center provider. AdaniconneX already has one operational data center in Chennai in Tamil Nadu. Other data centers are in various stages of development in Navi Mumbai, Hyderabad, Pune, NOIDA near the national capital of New Delhi, and Vizag.
According to research by IMARC Group, the Indian data center market size was valued at US$ 5.03 billion in 2024. Looking forward, it estimates the market to reach US$ 12.85 billion by 2033, exhibiting a CAGR of 10.43 percent from 2025-2033. It found that India’s data center market share was growing due to the “growing adoption of digital technologies in several industries, such as e-commerce, banking and healthcare, rising supportive policies by governing agencies, and heightened traction of cloud-based services across the country.”