Adani group ventures into IT field, opens new subsidiary to set up data centres

Adani Group has incorporated a new subsidiary to set up a data centre in Mumbai, it said in a regulatory filing. Reportedly, it is one of the half a dozen cities that the group has identified to set up data centres initially.

"...we would like to inform that AdaniConnex Private Limited, Joint Venture of the Company with EdgeConnex Europe BV has incorporated a WOS (wholly owned subsidiary) namely, Mumbai Data Center Limited ('MDCL'), on 4th February...," the group said in its filing.

The new arm AdaniConnex will undertake business to develop, operate, maintain, deal with data centres, Information Technology, Information Technology Enabled Services (ITES), cloud, providing services related thereto and to undertake activities associated with its infrastructure development including land acquisition and development, it added.

"MDCL will commence its business operations in due course."

Data Centres to be given Infra Status

The diversification comes close on the heels of the Centre's push towards data localisation. The Centre plans to expand the list of sectors given the infrastructure status.

It was widely expected that the Centre might bestow infrastructure status to new sectors in the Union Budget FY23 that presented by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday.

Notably, the infra tag enables these sectors to avail tax breaks, incentives and credit on lower interest rates.

Till now, activities associated with laying of power and telecom transmission and distribution lines, roads, highways, railways and construction of facilities such as hospitals, affordable housing, power generation units, water treatment plants, SEZs and certain type of hotels, among others, were given such status.

Besides, these sectors are part of a harmonised master list for infrastructure sub-sectors. However, in April 2021, exhibition-cum-convention centre was added to the list.

Now the Centre plans to include data centres as well as energy storage systems in the list of sectors given the infrastructure status.

In her Budget speech on Tuesday, Sitharaman said: "Data centres and energy storage systems, including dense charging infrastructure and grid-scale battery systems, will be included in the harmonised list of infrastructure. This will facilitate credit availability for digital infrastructure and clean energy storage."

(With inputs from IANS)