Adani forms unit to set up data center in Mumbai

Energy port conglomerate Adani Group has incorporated a new subsidiary to set up a data center in Mumbai, one of six cities that billionaire Gautam Adani’s group has identified to set up data centers in a first time. AdaniConnex Pvt Ltd, a 50/50 joint venture between Adani Enterprises and EdgeConnex Europe BV, incorporated a wholly-owned subsidiary Mumbai Data Center Ltd on Feb. 4, the Adani group company said in a filing.

The new unit “will undertake activities to develop, operate, maintain, manage data centers, information technology (IT)/information technology (ITES)/cloud enabled services, provide related services and undertake activities associated with the development of its infrastructure, including the acquisition and development of land for this purpose,” he said.

MDCL will start business operations in due course, he added.

In February 2021, Adani Enterprises Ltd had partnered with EdgeConneX, a leading data center operator, to develop one gigawatt (GW) of data center capacity over the next decade. The joint venture (JV), named AdaniConneX, will focus on building a network of hyperscale data centers in India, starting with Chennai, Navi Mumbai, Noida, Visakhapatnam and Hyderabad.

A data center provides the necessary secure architecture in which computing and networking equipment is concentrated to collect, store, process, distribute or provide access to large amounts of data.

Gautam Adani had said in November 2021 that he wanted his conglomerate to be a global leader in green data storage, with sites running entirely on clean energy, in line with India’s goal of becoming zero carbon d 2070.

The diversification comes against the backdrop of India’s digital economy which is expected to hit $1 trillion by 2025. Additionally, the Reserve Bank of India’s standard mandates data localization, which necessitates setting up large data centers to store and protect information.

Data localization refers to the storage of data on any device physically present within the borders of a country where the data is generated.

Adani and other big companies, from Reliance Jio to Bharti Airtel, are also looking to exploit this opportunity.

Last year, Adani Group secured land in Nodia, near here, for the Uttar Pradesh government’s data center. Flipkart has partnered with Adani Group to set up its third data center in Chennai.

Last week, Finance Minister Nirmala Sitharaman, in her budget for 2022-23, proposed classifying data centers and energy storage as infrastructure assets allowing businesses to access cheap credit. and long term.

“As India’s internet economy continues to grow, there is a growing need to build a data center required to ensure uninterrupted and seamless data consumption and storage.

“The growing number of smartphone subscribers with the increase in monthly mobile data traffic, coupled with the growing broadband penetration and the increase in digital transactions per year, will create a huge need for collection, storage, processing and distribution of data,” the Adani Group said on its website.

He said that Adani Enterprises Ltd (AEL) is the only company with inherent capabilities to build data centers across the country. The company has “complete ownership of large parcels of land across the country, project management capabilities and resource availability, an end-to-end energy value chain (generation, transmission and distribution), connectivity by fiber and strong network connectivity”.

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