According to anonymous sources, the Adani Group has identified Andhra Pradesh, 

Maharashtra, Gujarat and Tamil Nadu as possible sites for two 1 gigawatt (GW) 

capacity data centres. The group aims to gradually increase its total data centre 

capacity to 10 GW in the future.

Last year, there were media reports that AdaniConnex, a subsidiary of the Adani Group

 - a joint venture with global data centre provider EdgeConnex - was planning to invest 

$4 billion to expand its data centre business. It is unclear whether the reported $10bn 

investment includes the previous $4bn plan.

AdaniConnex is building data centre facilities in Mumbai and Pune. The company plans 

to expand its existing 17 megawatts (MW) of operational infrastructure and 210 MW 

under construction to about 1.5 GW over the next two years.

Meanwhile, Reliance Industries, the parent company of India's largest telecom service 

provider Reliance Jio, headed by Mukesh Ambani, has also been in the limelight recently 

for its plans to build a 3 GW world-class data centre in Jamnagar in western India.

However, these investment plans come at a time when global tech giants Microsoft and 

Amazon Cloud Services (AWS) are revisiting their data centre investment strategies. 

According to media reports, Microsoft has abandoned plans to add new data centres in 

the US and Europe, which would have added 2 GW of capacity. Microsoft is also a major 

investor in OpenAI, which disrupted the industry with its generative AI tool ChatGPT, which 

launched in 2022.

On the other hand, AWS may be delaying plans for new data centre leases. The adjustment 

could be linked to trade tariffs imposed by the US government, which could potentially hit 

the supply chains of global tech companies.

The data centre market size in India is valued at $5.7 billion in 2024 and is expected to reach 

$12 billion by 2030. Rising data consumption, increasing popularity of artificial intelligence 

tools and solutions, and widespread adoption of cloud computing are collectively driving 

the rise in demand for data centres.