Adani-IHC JV acquires cloud firm to expand data centre offerings

Sirius Digitech, a joint venture between Adani Group and Abu Dhabi’s International Holding Company (IHC), on Wednesday, announced the acquisition of a cloud platform company Coredge.io to expand its offerings for data centre operations through cloud and artificial intelligence (AI) solutions.

As per the agreement, Adani Group will buy a 77.5 per cent stake in Coredge's parent Parserlabs India. Parserlabs owns 100 per cent of Coredge.io. The cost of acquisition will be ₹20,000 per equity share having a face value of ₹1 each, the company said in a regulatory filing.

“As nations increasingly prioritise data security, it is more important than ever that organisations have the option to retain their data within national borders rather than relying solely on the public cloud. Sovereign Data Centers become extremely important for protecting sensitive information and maintaining national security, given the exponential growth in AI-driven demand for computation and sovereign data stack,” said Jeet Adani, Director of Adani Group.

“An additional benefit of this acquisition is our ability to put AI capabilities directly in the hands of organisations that require specialised sovereign cloud services for AI training and inferencing," he added.

Coredge.io, founded as a bootstrap company in 2020, offers secure and compliant cloud services for AI applications safeguarding data sovereignty and supports clients across Japan, Singapore and India. This agreement will enable Sirius Digitech to provide Machine Learning as-a-Service (MLaaS) as applications get built on its infrastructure.

“Partnering with Sirius marks an exciting new chapter for our sovereign AI and cloud platform business, both in India and globally,” said Arif Khan, CEO of Coredge.io.

Ajay Bhatia, CEO of Sirius International Holding said, “This step underscores our commitment to offering a portfolio of secure, trusted and localised cloud AI technologies to our customers and partners.”

To be sure, in December last year, Adani Energy Solutions announced a joint venture with a unit of International Holding Co. to explore AI, blockchain and other technologies, in a bid to deepen ties between the two entities. 

According to a new report published by market research firm Gartner on July 16, spending on data centre systems is expected to increase by 10 per cent to 24 per cent in 2024, up from 4 per cent in 2023. This growth is largely due to the adoption of technologies such as cloud computing, generative AI (GenAI), as well as IT service providers investing in semiconductors and servers to support AI's capacity demands, it said.