Adani Plans $100 Billion AI Data Center Investment by 2035

This article first appeared on GuruFocus.

Adani Enterprises has outlined what could become one of India’s largest artificial intelligence infrastructure commitments, with the Adani Group planning to invest $100 billion by 2035 to develop green-powered, AI-ready data centers. In a filing Tuesday, the company said the initiative is expected to catalyse an additional $150 billion in investments across server manufacturing, advanced electrical infrastructure and related sectors over the next decade. Shares advanced as much as 3.1% following the announcement, as Chairman Gautam Adani described the shift as part of an Intelligence Revolution that he suggested may prove more profound than previous industrial eras.

The strategy appears closely aligned with Prime Minister Narendra Modi’s effort to position India as a global AI hub, particularly as the country hosts the AI Impact Summit attended by leaders including Alphabet’s Sundar Pichai and OpenAI’s Sam Altman. AdaniConnex Pvt., a joint venture under Adani Enterprises, previously announced a partnership with Google, which is investing about $15 billion to build India’s largest AI infrastructure hub in Visakhapatnam. The group said it intends to rely on its renewable energy assets to power these data centers and is in discussions with other large firms to establish large-scale campuses across India, potentially expanding its digital infrastructure footprint.

The competitive backdrop is intensifying. Digital Connexion, a joint venture of Reliance Industries, signed an $11 billion investment pact in November to build data centers in Visakhapatnam, while Tata Consultancy Services secured $1 billion from TPG to accelerate its own expansion. International players are also committing capital: Amazon (NASDAQ:AMZN) plans to invest $12.7 billion in cloud infrastructure in India through 2030, and OpenAI is seeking to set up a 1-gigawatt data center in the region. Meanwhile, Adani Green Energy is developing a 30-gigawatt renewable project at Khavda, with more than 10 gigawatts already operational, alongside plans that include one of the world’s largest battery energy storage systems, assets that could support the group’s longer-term AI data center ambitions as demand scales.