Key points:
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Adani Group invests $100 billion to build a 5-gigawatt AI data center platform powered by renewable energy across India by 2035.
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Europe and the U.S. face power shortages and regulatory barriers, making India a more attractive market for large-scale data center expansion.
- Adani plans to integrate renewable energy, transmission lines, and battery storage systems, building a $250 billion ecosystem with partners like Google, Microsoft, and Flipkart.
India is stepping into the global spotlight with what could be one of the world’s largest AI data center expansions. The Adani Group announced a $100 billion investment on Tuesday to build a 5-gigawatt, renewable-powered hyperscale AI platform by 2035—a bold move as power shortages and regulatory hurdles stall growth in traditional Western hubs like Europe and the U.S.
“Nations that master the symmetry between energy and compute will shape the next decade,” said Gautam Adani, chairman of Adani Group. “India will not be a mere consumer in the AI age. We will be the creators, the builders, and the exporters of intelligence.”
The timing of the announcement is critical. Across the world, data center construction is hitting a wall. In Europe and the U.S., vacancy rates have fallen to record lows, with power availability now the single biggest bottleneck. In some cases, project timelines are being extended by up to six years due to grid constraints. Ireland, once a data center hotspot, even imposed a moratorium on new builds in Dublin from 2021 until late 2025. Germany’s Energy Efficiency Act now mandates that new data centers run on 100% renewables starting in 2027. In contrast, India faces fewer such restrictions, making it an increasingly attractive environment for large-scale AI infrastructure.
Adani’s strategy is based on vertical integration. The company said it would combine renewable energy generation, battery energy storage systems (BESS), and high-density AI compute into a unified platform. A centerpiece of its plan is the 30 GW Khavda renewable project in Gujarat, of which more than 10 GW is already operational. The group also plans to invest an additional $55 billion to expand its renewable capacity and battery storage infrastructure.
“Vertical integration is the key to providing a robust, scalable, and profitable data center architecture,” said Neil Shah, VP for Research at Counterpoint Research. However, analysts like Ashish Banerjee from Gartner warn that building multi-gigawatt campuses with renewables in parallel presents serious execution challenges, from permitting to grid stability to supply chain complexities.
Adani’s expansion builds on its 2 GW national data center platform via AdaniConneX, already home to major partnerships. Google is set to open India’s largest campus at Vizag, while Microsoft is building hyperscale facilities in Hyderabad and Pune. Adani also deepened ties with Flipkart for an AI-optimized data center tailored to high-performance e-commerce workloads. With its port network providing global connectivity, Adani is positioning itself as a critical link between India and markets in the Americas, Europe, Africa, and Asia.
One of the more nuanced aspects of the announcement is its reference to digital sovereignty. Adani stated that a significant portion of GPU capacity would be reserved for Indian AI startups and research institutions. But experts like Sanchit Vir Gogia caution that true sovereignty depends not just on where infrastructure is built, but on who controls access, oversees operations, and manages data obligations. “Ownership alone does not define sovereignty,” Gogia noted.
For now, the market is unlikely to wait until 2035 to assess Adani’s claims. “In practice, the market will judge this on near-term proof points—grid capacity secured, power contracting in place, and anchor tenants signed—rather than the headline capex or long-dated targets,” said Banerjee. Whether Adani can execute on its promise to marry AI, energy, and data sovereignty may determine how India positions itself in the global AI race.
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