Adani pledges $100B to build AI data centers as India seeks bigger role in the global AI race

In a significant announcement on Monday, the Adani Group revealed plans to invest a staggering $100 billion over the next ten years to establish AI-focused data centers across India. This bold investment emphasizes the country's aspiration to secure a prominent position in the global AI landscape. The initiative, set to continue until 2035, aims to construct data centers powered by renewable energy, specifically designed to handle AI workloads. The conglomerate anticipates that this venture will stimulate an additional $150 billion in related investments, potentially culminating in a colossal $250 billion AI infrastructure ecosystem in India within the decade. As demand for AI infrastructure surges, driven by companies seeking alternatives to U.S. resources, India has emerged as a prime location for data centers, thanks to its expanding digital economy and increasing renewable energy capabilities. This announcement aligns with India’s ongoing AI Impact Summit in New Delhi, where leaders from major AI firms—including OpenAI, Nvidia, Anthropic, Microsoft, and Google—are convening with policymakers and business executives. Gautam Adani, chairman of the Adani Group, characterized this initiative as a strategic long-term investment in the intersection of energy and computing. He asserted that India aims to transform from being a mere consumer in the AI era to establishing a robust domestic AI infrastructure. The project will leverage Adani’s existing data center framework and partnerships with tech giants like Google and Microsoft. Plans are already underway for significant AI data center campuses in cities like Visakhapatnam and Noida, with additional facilities expected in Hyderabad and Pune. Furthermore, an enhanced partnership with Flipkart, owned by Walmart, will focus on creating another AI data center. The broader vision includes deploying up to 5 gigawatts of data center capacity, with the facilities designed as an integrated system to scale both power generation and processing capabilities simultaneously. This initiative builds upon AdaniConneX, a joint venture with U.S.-based EdgeConneX, which has already established approximately 2 gigawatts of data center capacity throughout India. At the heart of this strategy is Adani's renewable energy portfolio, which promises to deliver carbon-neutral power to the new data centers. The company highlighted its 30-gigawatt Khavda renewable project in western India, of which over 10 gigawatts are already operational, and it plans to invest an additional $55 billion to enhance renewable generation and battery storage in the coming years. To mitigate risks associated with global supply chain disruptions, Adani intends to co-invest in the domestic manufacturing of essential components, including transformers, power electronics, and thermal management systems. However, details regarding the allocation of the $100 billion investment and the timeline for operationalizing large-scale AI workloads remain undisclosed.