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NIFTY23,4060.33%
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Adani Group Pursues Partnerships for Data Center Expansion

Indian billionaire Gautam Adani is in talks with American technology giants Meta Platforms Inc. and Google for partnerships in his fast-expanding data center business. The discussions, part of a $100 billion digital infrastructure push by Adani Group, aim to position the company as the supplier of both land and renewable energy needed for hyperscale facilities.

AdaniConnex Pvt., a joint venture between Adani Enterprises Ltd. and EdgeConneX, has already announced a partnership with Google, which is investing about $15 billion to build India's largest AI infrastructure hub at Visakhapatnam. The current negotiations mark a fresh phase of investment beyond those commitments.

Walmart Inc.'s Flipkart is also engaged in talks with Adani Group for potential partnerships. The company is exploring sites across Indian states for the new data centers. Specific sites for the new facilities have yet to be finalized, and the discussions remain preliminary.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The move underscores intensifying competition for digital infrastructure in India, with India's landmass and fast-growing economy making it a magnet for overseas investors and technology companies seeking scale. Global players are also stepping up, with Amazon.com Inc. planning to invest $12.7 billion on cloud infrastructure in India through 2030, and OpenAI seeking to set up a 1-gigawatt data center in the region.

Recent developments in the data center market include:

  • Reliance Industries Ltd., led by Mukesh Ambani, signed an $11 billion pact to build data centers at Visakhapatnam in November.
  • Tata Consultancy Services Ltd. secured $1 billion from TPG Inc. to accelerate its own efforts.

Investor Takeaway

Investors should monitor Adani Group's data center expansion plans for potential growth opportunities.

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