Adani Group is negotiating a $1.5 billion loan to finance the expansion of its data center business, a move that highlights how India's infrastructure conglomerates are increasingly competing for a foothold in the country's fast-growing digital economy. The discussions, led by AdaniConneX — the joint venture between Adani Group and U.S.-based EdgeConneX — are taking place with multiple lenders, according to people familiar with the matter.
The financing effort comes at a time when demand for data storage, cloud computing and artificial intelligence-ready infrastructure is rising sharply across India. For Adani, the transaction would support a broader long-term strategy that extends well beyond conventional ports, power and logistics. The group has signaled plans to invest roughly $100 billion in digital infrastructure by 2035, a target that reflects both the scale of the opportunity and the capital intensity of the sector.
Digital Build-Out Accelerates
AdaniConneX has emerged as the vehicle through which the group is building out its data center footprint. The venture combines Adani's domestic infrastructure reach and power capabilities with EdgeConneX's global data center expertise, giving it a platform to develop large-scale facilities in key Indian markets. The proposed loan would help fund that expansion at a moment when hyperscale and enterprise customers are seeking reliable, high-capacity digital infrastructure closer to end users.
The timing is notable. India's data center market is expanding rapidly as businesses migrate workloads to the cloud, digital payments continue to scale and AI adoption begins to reshape enterprise technology spending. Data centers are also becoming strategically important because they require not only land and construction capital, but also dependable electricity, cooling systems and network connectivity — areas where Adani's broader energy and infrastructure businesses can provide an advantage.
The group's move also fits a wider pattern among large Indian conglomerates that are repositioning themselves for the next phase of digital growth. With the country's data consumption rising and regulatory attention increasing around data localization and digital resilience, large-scale infrastructure providers are seeking to capture long-duration, utility-like revenue streams from the sector.
Capital Race In AI Infrastructure
Adani is not alone in pursuing this opportunity. Reliance Industries and its broader conglomerate ecosystem are also investing heavily in artificial intelligence infrastructure, intensifying competition among India's biggest business groups to secure the physical backbone of the digital economy. That rivalry is likely to shape the pace of investment in data centers, cloud capacity and related energy assets over the next several years.
For lenders, the proposed financing offers exposure to a sector with strong structural demand, but also one that requires substantial upfront capital and careful execution. Data center projects typically involve long development cycles, high power requirements and the need to maintain occupancy levels to generate stable returns. The scale of the Adani proposal suggests confidence that demand will remain robust enough to justify large, multi-year investments.
The financing discussions also underscore how the Adani Group is broadening its growth narrative after years of expansion across ports, airports, energy and logistics. By linking data center development to its power and infrastructure capabilities, the conglomerate is positioning itself to benefit from the convergence of digital services and physical infrastructure.
If completed, the $1.5 billion loan would represent an important step in funding that strategy and could provide a template for future capital raising as the group scales its digital ambitions. It would also reinforce the view that India's infrastructure majors are no longer just building roads, ports and power plants — they are increasingly building the digital systems that will support the country's next phase of economic growth.