The Noida Authority has officially approved the sublease of a 10-acre plot in Sector 80 to Noida Data Centre Limited (NDCL).
As reported by the Hindustan Times, a special purpose vehicle formed by Adani Enterprises Limited (AEL) and EdgeConneX. This decision was confirmed during a board meeting chaired by Uttar Pradesh Chief Secretary Manoj Kumar Singh.
Initially, the Noida Authority had rejected Adani Group’s request for the sublease, citing restrictions outlined in the lease deed associated with the property. The board had previously decided against the sublease due to these conditions. However, after detailed discussions and a reconsideration in July 2024, the Authority’s board reversed its stance, facilitating the establishment of a data center in Sector 80.
Lokesh M, Chief Executive Officer of the Noida Authority, stated, “The Noida Authority board discussed the agenda related to this project and approved the request after deliberations. A data center is set to be developed on the land as it was previously allotted for this purpose.”
Following the Noida Authority’s initial rejection, Adani Enterprises sought intervention from the Uttar Pradesh government. The Uttar Pradesh Industrial Development Department revisited the case, guided by the UP Data Centre Policy of 2022. This policy prioritizes specific provisions for data center projects over general lease conditions.
The Department of Industrial Development determined that these provisions should take precedence, leading to a reassessment of the sublease request. Subsequently, the board approved the sublease in accordance with the Data Centre Policy’s First Amendment, which allows for sublease permissions without a transfer fee.
AdaniConnex, a 50-50 joint venture between Adani Enterprises and global data center operator EdgeConneX, was established in February 2021. This venture aims to develop data centers across India, supporting the growing demand for digital infrastructure. The Noida data center project aligns with AdaniConnex’s strategy to expand its presence in the data center sector.
The approval of this data center project is expected to significantly enhance Noida’s IT infrastructure. Data centers are crucial for supporting the increasing demand for cloud services and digital connectivity. This development is set to bolster Noida’s position as a key player in the IT sector, potentially attracting further investments and contributing to regional economic growth.