AdaniConneX Expands Footprint in India’s Data Center Market
In a strategic move aimed at bolstering its presence in India’s burgeoning data center market, the Adani Group’s Terravista Developers has secured leasehold rights to a sprawling 25-acre land parcel in Pune’s Pimpri industrial zone from Finolex Industries for approximately Rs 471 crore. This acquisition marks a significant step forward for the Adani Group’s data center venture, AdaniConneX, a joint venture between Adani Enterprises and the US-based global hyperscale data center provider EdgeConneX.
The transaction, finalized on April 3, involved the payment of stamp duty exceeding Rs 23.52 crore, as revealed by registration documents accessed through CRE Matrix. The land parcel, originally leased by the Maharashtra Industrial Development Corporation (MIDC) to Swastik Rubber Products in the late 1960s, subsequently came under the purview of Finolex Group entities in 1982. Following recent subdivisions and adjustments, the leasehold rights have now been transferred to the Adani Group for the development of a large-scale data center facility.
AdaniConneX, established through a 50:50 joint venture between Adani Enterprises and EdgeConneX in February 2021, is poised to revolutionize India’s data center landscape. With a focus on building hyperscale data centers across key markets including Chennai, Navi Mumbai, Noida, Vizag, Hyderabad, and now Pune, the joint venture aims to develop 1 GW of data center capacity over the next decade.
Despite attempts to seek clarification, responses to queries from both Adani Group and Finolex Industries were not forthcoming at the time of publication.
The investment and commitments in India’s data center sector have been steadily rising, reflecting the growing allure of the country among global data center players. With over $13.5 billion earmarked for data center development, India’s data center market is poised for exponential growth, propelled by factors such as data localization norms, digitization initiatives, and the impending rollout of 5G technology. Additionally, the government’s proposed new data center policy is anticipated to streamline regulations, providing impetus to the sector by facilitating clearances and infrastructure development in a timely manner.
