Indian data center firm AdaniConneX is reportedly looking to raise $400 million debt financing.

Citing unnamed people familiar with the matter, Bloomberg reports the Adani Group/EdgeConneX joint venture is in talks with a group of global lenders to raise as much as $400 million via an offshore loan.

AdaniConnex (India)  Adani Group EdgeConneX.png
– Adani Group & EdgeConneX

The proceeds will be used to fund the data center firm’s growth plans this year, with a five-year tenor (time till the end of the contract) under discussion, according to the publication.

This would be the company’s second loan in recent months. Over the summer, AdaniConneX secured $213 million in debt financing to fund its data center build-out in India, with the deal financing the company’s Chennai 1 campus in Tamil Nadu with a Phase 1 capacity of 17MW and the 50MW Noida campus in Uttar Pradesh.

ING Bank, Mizuho Bank, MUFG Bank, Natixis, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation committed to the summer facility.

The joint venture was first announced in February 2021, with Indian conglomerate Adani and US data center firm EdgeConneX aiming to deliver 1GW of hyperscale data center capacity throughout India.

AdaniConneX launched a data center in Chennai in October 2022, with the first phase offering 17MW. At full build-out, the campus will reach 33MW. The company is also working on facilities in Noida - where the construction site recently had a small fire - Vizag, Hyderabad, Pune, and Mumbai.

EQT-backed EdgeConneX secured more than $1 billion in sustainability-linked financing in 2022. Adani has previously said it aims to spin out and list AdaniConneX before 2028.

2023 saw Adani come under fire after short-seller Hindenburg Research published an investigation alleging stock manipulation, accounting fraud, and money laundering. The conglomerate denied the claims.