Best known in Australia as the backer of the Carmichael coal mine in Queensland's Galilee Basin, India’s Adani Group has announced plans invest US$100 billion by 2035 to build data centres in India powered by renewable energy and designed to run artificial intelligence (AI) systems.
The company intends to create what it described as the world’s largest integrated data centre platform by expanding its current capacity from 2 gigawatts (GW) to 5 GW.
Adani told the market that the investment could help generate an additional $150 billion in related spending over the next decade, including in server manufacturing, electrical equipment and so-called sovereign cloud platforms.
A sovereign cloud is a cloud computing system that stores and processes data within a country’s borders to meet local laws.
The company estimated that the combined effect could create a $250 billion artificial intelligence infrastructure network in India.
The announcement comes as India seeks to expand its role in the global AI sector and will build on AdaniConnex, a joint venture between Adani Group and EdgeConnex, which develops and operates data centres.
The company expects new facilities to be constructed alongside renewable power plants and transmission networks to ensure a steady electricity supply for high-performance computing systems.
High-performance computing refers to the use of powerful processors to handle large volumes of data at high speed.
It’s understood that Adani’s data centres will be equipped with liquid cooling systems, which use fluids instead of air to prevent servers from overheating, and will support large AI computing clusters.
A portion of graphics processing units, or GPUs - specialised chips used to train and run AI models - will be reserved for Indian start-ups and research institutions.
The renewable energy supply is expected to draw in part from the 30 GW Khavda project in Gujarat, developed by Adani Green Energy.
The group has separately pledged $55 billion to expand its renewable energy capacity and battery storage systems.
Battery storage allows excess electricity to be stored and used when demand rises.
Adani Group said it is working with Google, owned by Alphabet, to develop large AI data centre campuses in India.
It is also collaborating with Microsoft on facilities in Hyderabad and Pune and plans to deepen its partnership with Flipkart to build another AI-focused data centre to support digital commerce operations.
Chairman Gautam Adani expects countries that combine energy production with computing capacity to shape the next phase of technological growth.
The company aims to ensure India develops its own computing infrastructure rather than relying entirely on foreign providers.
Shares in Adani Enterprises and other listed Adani companies rose after the announcement.
The investment plan follows recent volatility in Adani Group stocks.
Court filings in the U.S. have shown that the U.S. Securities and Exchange Commission is seeking to serve a summons on Gautam Adani and his nephew in connection with alleged bribery and fraud.
India’s Ministry of Law and Justice has previously declined to deliver the summons under international legal procedures.
The group has not detailed how the legal proceedings could affect its expansion plans.
Adani said construction of new facilities will begin in phases, with the goal of completing the 5 GW capacity target by 2035.
