RE Integration in ACX Operations – AdaniConneX
RE Integration in ACX Operations
Problem
- Datacenters consume massive amounts of energy, contributing heavily to greenhouse gas (GHG) emissions.
- Inability to install captive solar power plants on-site due to space constraints.
- Regulatory and policy constraints hindered renewable energy sourcing within the group.
- Customer expectations for green datacenters increased business pressure.
- Rising risk of future compliance costs with India’s net-zero 2070 commitment.
Solution
- Signed a long-term power purchase agreement in Tamil Nadu for sourcing wind and solar power.
- Included RE procurement from multiple generators to balance supply and mitigate risk.
- Integrated emissions modelling and renewable feasibility studies to plan a clean energy shift.
- Executed RE supply agreement of 20 million kWh/year with progressive ramp-up.
- Investment in energy producers created long-term alignment and supply assurance.
Outcomes
- Achieved a 57% renewable energy mix in FY25 for Chennai operations.
- Avoided 12,000 TCO2e of GHG emissions.
- Delivered up to 39% operational cost reduction year-over-year.
- Enhanced customer satisfaction and retention through green colocation services.
- Set pathway to scale RE procurement to 4,300 GJ by FY 2030.
SKOCH Award Nominee
Category:
Sub-Category: sec
Project: RE Integration in ACX Operations
Start Date: 4-01-2024
Organisation: AdaniConneX
Respondent: Vishal Gupta
https://www.adaniconnex.com/
Level: ESG – 1
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Case Study
RE Integration in ACX Operations
AdaniConneX, a joint venture between Adani and EdgeConneX, launched its Renewable Energy (RE) Integration project to transform the energy consumption pattern of its colocation data centre operations. Recognising the exponential energy needs and associated emissions of data centres, the company committed to a Net Zero target for Scope 1 and Scope 2 emissions by 2030. The intervention began in mid-FY24 as a response to customer preferences for greener infrastructure, national decarbonization goals, and the impracticality of setting up captive solar generation within datacenter premises.
A strategic solution was implemented through a third-party power purchase agreement (PPA) in Tamil Nadu that combined solar and wind power sourcing. This hybrid RE mix addressed peak-hour generation issues associated with solar alone. The PPA, signed in November 2023, enabled a contracted capacity of up to 20 million kWh annually. A risk diversification approach was adopted to source from multiple renewable providers, and the agreement was designed to be long-term with partial ownership by AdaniConneX to enhance control and alignment.
The process began with detailed demand forecasts and emissions modelling conducted by third-party experts. Feasibility assessments and developer selection were followed by onboarding suppliers and finalising financial models. Throughout implementation, the company navigated regulatory hurdles, especially those preventing RE sourcing from within the group’s own companies. Space constraints at the Chennai facility also made onsite generation unfeasible.
Despite these barriers, AdaniConneX succeeded in reducing operational GHG emissions by 12,000 tonnes in FY25 alone. The RE mix now contributes 57% of the total power requirement of the Chennai datacenter. Notably, this transition also improved business performance by reducing electricity costs and increasing client confidence in the sustainability roadmap. The model has proven scalable, with plans to extend similar PPA structures to additional ACX locations across India.
The initiative demonstrates that data centres, though energy-intensive, can adopt renewable sourcing to become resilient, cost-effective, and environmentally compliant. With the Indian government likely to introduce stricter carbon regulations, AdaniConneX’s proactive shift gives it an edge in future-proofing its operations. The hybrid RE strategy ensures uninterrupted power, while planned energy storage systems may further smooth variability.
For more information, please contact:
Vishal Gupta at vishal.gupta@adani.com
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