Adani Group, led by billionaire Gautam Adani, is looking to raise approximately $1.5 billion through an offshore loan to finance its expansion into the data centre business. AdaniConneX Pvt. Ltd., its joint venture with US-based data centre operator EdgeConneX, is in discussions with several international lenders for the proposed financing, according to a latest report.

The lenders involved in the discussions include Singapore-based DBS Group Holdings, Abu Dhabi’s First Abu Dhabi Bank (FAB) and Japan’s Mitsubishi UFJ Financial Group (MUFG). The group is also holding talks with France’s Natixis, Dutch lender ING Bank and France-based Société Générale as it explores options for the offshore facility.

The proposed loan could have a tenure of five to seven years. Discussions over pricing are currently underway, although the terms of the facility have not been finalised. 

The proposed borrowing comes as Adani Group steps up its plans to build a substantial presence in India’s data centre and digital infrastructure sector. The conglomerate has announced plans to invest approximately $100 billion by 2035 in data centres and other digital infrastructure, with its existing energy business also forming part of its broader infrastructure operations.

Adani’s Earlier $800 Million Loan And Its $100 Billion Investment Plan

The proposed $1.5 billion borrowing follows an earlier financing arrangement under which AdaniConneX secured an $800 million bridge loan from a syndicate of international lenders. Reported in August 2026, the 18-month facility was intended to support the development of data centre infrastructure in Andhra Pradesh. The financing was reported to carry an all-in cost of approximately 200 basis points over the Secured Overnight Financing Rate (SOFR), the US dollar benchmark interest rate.

Separately, financing documentation published in September by law firm Cyril Amarchand Mangaldas disclosed an $800 million bridge financing facility availed jointly by two AdaniConneX subsidiaries, Giridhari Build Estate Ltd. and Granthik Realtors Pvt. Ltd. The facility was intended for the construction, operation and maintenance of five data centre projects in Telangana, with a combined planned capacity of 310 MW. The documentation identified eight lenders, including Natixis, Rabobank, Sumitomo Mitsui Banking Corporation, DBS, MUFG and ING.
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At the group level, Adani has outlined a much larger investment programme. In January 2026, the conglomerate announced plans to invest approximately $100 billion by 2035 in AI-ready, renewable-powered data centres. The investment is part of its broader digital infrastructure plans, with the group also looking to develop the energy infrastructure required to support these facilities.

The company’s data centre ambitions are also tied to its partnership with EdgeConneX, through AdaniConneX, a joint venture between Adani Enterprises and the US-based data centre operator. The partnership combines Adani’s infrastructure and energy businesses with EdgeConneX’s experience in developing and operating data centres.

Reliance’s $110 Billion AI Push Adds To India’s $210 Billion Investment Race

Adani is not the only Indian conglomerate making a massive bet on the country’s artificial intelligence and data infrastructure market.

Reliance Industries and its telecom arm Jio have announced plans to invest approximately $109.8 billion over the next seven years to build AI and data infrastructure, taking the combined investment commitments of the two groups to nearly $210 billion.

The announcement was made by Reliance chairman Mukesh Ambani at the India AI Impact Summit in New Delhi in February 2026. The investment is aimed at building infrastructure to support the development and deployment of artificial intelligence technologies in India.

Ambani has indicated that Reliance wants to bring artificial intelligence to consumers using an approach similar to the one it adopted in the telecom sector in 2016, when Jio entered the market with sharply reduced data prices and expanded access to mobile internet services. The company believes that making computing more affordable and accessible could encourage wider adoption of AI applications and services.

As part of its plans, Jio is developing multi-gigawatt, AI-ready data centres, including a facility in Jamnagar, Gujarat. The facility is expected to add more than 120 MW of capacity in the second half of 2026, according to the reporting provided in the original material. Reliance is also looking to develop an integrated AI ecosystem, covering computing infrastructure and services rather than limiting its presence to data-centre operations.

The investment announcement comes alongside growing partnerships between Reliance and global technology companies. In June 2026, Meta Platforms agreed to lease an AI-ready data centre to be built by Reliance in Jamnagar. The facility is planned to have an initial capacity of 168 MW, with the possibility of expansion. The partnership adds to the growing involvement of international technology companies in India’s data-centre expansion.

Together, the investment plans announced by Adani and Reliance amount to approximately $210 billion over their respective investment periods. The commitments underline the scale of capital being directed towards data centres, computing infrastructure and AI-related services as Indian conglomerates and global technology companies expand their presence in the sector.

Why India Is Emerging As A Major Destination For Data Centre Investments

The investment announcements by Adani and Reliance come at a time when India’s data-centre industry is expanding rapidly, supported by rising demand for cloud computing, digital services and artificial intelligence. The country has become an increasingly important market for companies looking to establish computing and data-storage infrastructure, particularly as businesses and consumers generate larger volumes of digital information.

According to a government factsheet published in September 2026, India’s installed data-centre power capacity increased from approximately 375 MW in 2020 to 1.57 GW in August 2026. It is projected to reach nearly 8 GW by 2030. The government also reported that investments worth approximately $70 billion were already underway in the sector, with another $90 billion in announced projects.

The scale of the opportunity is also reflected in estimates by Deloitte. The consultancy expects India to attract approximately $200 billion in data-centre investments by 2030. Its assessment noted that while India accounts for around 20% of global data consumption, it hosts less than 5% of the world’s data centres, indicating the extent of infrastructure development expected in the coming years.

The expansion is being supported by investments from international technology companies, including Google, Amazon, Microsoft and Meta, alongside Indian conglomerates. Government incentives are also playing a role. Under the Union Budget 2026–27, eligible foreign cloud service providers serving global customers through data centres in India have been offered a tax holiday until 2047.

Data centres were also accorded infrastructure status in the Union Budget 2022–23, improving access to infrastructure financing.

The growing investment pipeline is also extending beyond established data-centre markets such as Mumbai. Hyderabad, Chennai, Pune, Bengaluru, Delhi-NCR and Visakhapatnam are among the locations attracting new projects.

Power, Renewable Energy And The Infrastructure Requirements Of AI Data Centres

The expansion of India’s data-centre industry is also increasing demand for electricity, cooling systems and supporting infrastructure. Unlike conventional commercial buildings, data centres require uninterrupted power to keep servers, storage systems and networking equipment operational around the clock.

The growing use of artificial intelligence and high-performance computing is adding to these requirements, with AI workloads requiring higher-density computing equipment and more advanced cooling arrangements.

According to the Ministry of Electronics and Information Technology, India’s data centres currently account for less than 1% of the country’s installed power capacity. However, the Central Electricity Authority estimates that electricity demand from the sector could reach approximately 17 GW by 2031–32. The government has identified renewable energy, energy efficiency and advanced cooling technologies as important components of the sector’s expansion.

This has also brought the energy businesses of Adani and Reliance into focus. Both conglomerates have substantial interests in power generation and renewable energy, alongside their investments in digital infrastructure. Their plans include developing data centres powered by renewable energy, with the availability of electricity emerging as an important consideration in selecting locations for new facilities.

Cooling is another major requirement. As servers process increasingly demanding AI workloads, they generate substantial heat that must be removed to maintain operational efficiency. Traditional air-cooling systems are increasingly being supplemented by technologies such as direct-to-chip liquid cooling, immersion cooling and closed-loop liquid cooling systems. These technologies are designed to manage heat generated by high-density computing equipment while improving energy and water efficiency.

The government has also referred to standards developed by the Bureau of Indian Standards covering power usage effectiveness, carbon usage effectiveness, cooling efficiency and water usage effectiveness. These measures are intended to provide benchmarks for improving the efficiency of data-centre operations.

The Environmental And Regulatory Challenges Facing India’s Data Centre Expansion

While investments in data centres are increasing, the expansion has also brought attention to the sector’s requirements for land, electricity and water. These concerns have become particularly visible in areas where new projects are being developed close to residential communities or regions already facing pressure on natural resources.

For example, growing opposition from residents to Amazon’s planned data-centre facility near Mumbai – residents have raised concerns about the removal of trees, noise, electricity consumption, water availability and the potential impact on nearby residential areas. More than 1,000 residents living close to the proposed facility have reportedly objected to the project, arguing that they were not adequately consulted before it was approved.

Amazon, however, has said that the facility will use a dedicated electricity supply, water-free cooling and noise-mitigation measures. The company has also said that it planted more saplings than the number of trees removed during the project.

A similar debate has emerged around Google’s proposed $15 billion data-centre project in Andhra Pradesh. Environmentalists have raised concerns about the project’s potential impact on local water supplies, wildlife and surrounding land. They have also questioned the use of land associated with a temple. Google and the Andhra Pradesh government have denied allegations of wrongdoing and maintained that the project complies with applicable regulations.

Water consumption is another important consideration. India has approximately 4% of the world’s freshwater resources despite accounting for around 18% of its population. Reuters, citing S&P Global, reported that 60–80% of Indian data centres could face high water stress during this decade. Research by Mordor Intelligence also estimates that data centres consumed approximately 150 billion litres of water in 2025, with consumption expected to more than double by 2030.

On the regulatory front, the government has indicated that it is working on a dedicated data-centre policy.

In October 2026, Minister of State for Electronics and Information Technology Jitin Prasada said the government was preparing such a policy, with the objective of addressing concerns around electricity consumption and ensuring that the expansion of data centres does not increase the burden on ordinary electricity consumers. At the time of the announcement, the minister did not provide details about the proposed policy or its expected implementation timeline.

Separately, the Ministry of Environment, Forest and Climate Change has clarified that AI data centres do not automatically require environmental clearance under the existing Environmental Impact Assessment notification. However, projects falling within specified building and construction or township development thresholds require prior environmental clearance. Water use, wastewater discharge and groundwater extraction are also governed by existing environmental and water regulations.

India’s AI Ambitions And The Growing Importance Of Data Centre Infrastructure

India’s growing investments in data centres are closely linked to its efforts to establish a larger presence in the global artificial intelligence industry. While the country has a substantial technology services sector and a large pool of engineering talent, it has so far played a relatively limited role in the global AI boom, particularly in the manufacturing of advanced semiconductors and the development of large-scale computing infrastructure.

This has made data centres an important part of India’s AI development plans. These facilities provide the computing power, storage and networking infrastructure required to train and operate AI models, run cloud services and support applications across industries. As demand for AI-based services increases, the availability of domestic computing capacity is becoming an important part of the country’s digital infrastructure expansion.

The government has also been working to attract investment into the broader AI ecosystem through initiatives covering computing infrastructure, research, talent development and domestic technology capabilities. Its IndiaAI Mission, approved in March 2024 with an allocation of ₹10,371.92 crore over five years, includes the development of shared computing infrastructure through a common compute facility, alongside support for startups, indigenous AI models and AI applications.

The IndiaAI Mission, approved by the Union Cabinet in March 2024 with an allocation of ₹10,371.92 crore over five years, is one of the government’s key initiatives in this area. It covers seven areas, including AI computing capacity, indigenous foundation models, datasets, application development, skill development, startup financing and safe and trusted AI.

The programme has also expanded its shared computing infrastructure. According to the Ministry of Electronics and Information Technology, India had more than 45,000 GPUs available through the IndiaAI Mission’s shared compute infrastructure as of June 2026. By August, 237 projects had received approval for subsidised computing support, covering 93.18 lakh GPU hours. The government has also placed an order for a high-performance AI computing system with approximately 1.1 exaflops of capacity at the National Informatics Centre’s data centre in Delhi.

Alongside these initiatives, the government is pursuing semiconductor manufacturing and other technology-related investments to strengthen domestic capabilities. The India Semiconductor Mission and the IndiaAI Mission form part of this broader effort to develop capabilities across different parts of the technology supply chain.

The expansion of data-centre infrastructure, therefore, forms one part of a wider effort involving computing capacity, semiconductor development, AI research and the deployment of AI-based applications across sectors.