Business Desk – Adani Enterprises, the flagship company of the Adani Group, has for the first time shared information regarding the potential cost of the 1 gigawatt (GW) AI Data Center Hub being built with Google. The Adani Group and Google announced this project in Visakhapatnam nearly a year ago. According to the company, building the data center could cost between ₹700 million and ₹750 million per megawatt. Consequently, the first phase of 400 megawatts is estimated to cost approximately ₹30,000 crore.
During the company’s Q1 earnings call on July 29th, Adani Group CFO Jugeshinder Singh provided information regarding the project’s cost and potential return on investment (ROI) in response to questions about funding plans. He stated that the company is aiming to achieve an annual ROI of approximately 12% on a dollar basis in this data center business. However, the ₹30,000 crore figure is not the official project cost announced by the company, but is based on an upper estimate of ₹75 crore per megawatt.
Estimated ₹30,000 crore for the 400 MW Project
AdaniConneX’s 400 MW Visakhapatnam project, based on the company’s upper estimate of ₹75 crore per megawatt, brings the total cost to approximately ₹30,000 crore.
CFO Jugeshinder Singh confirmed that this 400 MW project is part of Google’s AI project. AdaniConneX is a joint venture between the Adani Group and global data center operator EdgeConneX.
How was the ₹30,000 crore figure arrived at?
It is important to understand that ₹30,000 crore is not the full project cost announced by the Adani Group. This figure is based solely on the per-megawatt cost estimate provided by management.
The company has estimated the cost of the data center to be approximately ₹700 million to ₹750 million per MW. If the upper estimate, i.e., ₹750 million per MW, is applied to a 400 MW capacity, the cost is ₹400 × ₹750 million, or approximately ₹30,000 crore.
GPU cost not included
CFO Jugeshinder Singh also clarified that the GPU (Graphics Processing Unit) will be provided by the end customer. Therefore, the cost of GPUs is not included in the per-megawatt cost provided by the company.
GPUs are among the most critical and expensive components in an AI data center. Therefore, excluding GPU costs, the actual total cost of this project may differ from the estimated ₹30,000 crore.
The 400 MW Project is the first phase of the 1 GW Google AI Hub.
According to a company spokesperson, the recently announced 400 MW order is part of the first phase of the 1 GW Google AI Hub to be built in Visakhapatnam.
The company states that this project could play a significant role in expanding India’s AI infrastructure capacity. AdaniConneX described working with Google on this project as a significant achievement.
According to the company, this project could help Visakhapatnam develop into a major global technology hub.
How will AdaniConneX be funded?
During the Q1 Earnings Call, the CFO was also asked how AdaniConneX would fund its committed capacity and whether customers would contribute to the project through advance payments or prepayments.
The company shared information about the data center’s cost and potential returns. The company is aiming to achieve an annual ROI of approximately 12% on this business, based on dollar terms.
However, details regarding the amount of advance funding from the customer or the funding structure for the entire project are not yet available.
Revenue and EBITDA Estimates Not Yet Disclosed
Adani Group has not yet shared estimates for the project’s potential revenue per megawatt, EBITDA, operating margin, or earnings upon reaching full capacity.
CFO Jugeshinder Singh stated that the project’s overall economic prospects are good. However, he clarified that working with a large customer does not necessarily mean high profit margins. Actual returns will depend on the type of contracts signed with the customer.
Economic details were not provided in previous earnings calls.
According to the company, economic information for this project was not shared during the Q3 FY26 Earnings Call in February 2026 and the Q4 FY26 Earnings Call in April 2026.
Now, in the Q1 Earnings Call on July 29th, investors received key information for the first time regarding the data center’s potential cost, targeted ROI, and funding model. However, the project’s full commercial picture has not yet been revealed.