Sirius Digitech Ltd, a joint venture between billionaire Gautam Adani-led Adani Group and Abu Dhabi-based International Holding Company (IHC) unit Sirius International Holding, has agreed to acquire cloud platform company Coredge.io to expand its offerings for data centre operations through cloud and artificial intelligence (AI) solutions.
As per the agreement, Sirius Digitech will buy a 77.5% stake in Coredge's parent Parserlabs India Pvt Ltd. Parserlabs owns 100% of Coredge.io. The cost of acquisition will be Rs 20,000 per equity share, Adani Enterprises said in a regulatory filing, without specifying the total deal value.
“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 artificial intelligence-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 bootstrapped 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 that Coredge.io has demonstrated a global presence with the ability to scale solutions through sovereign AI cloud services that are globally available but locally operable. “This step underscores our commitment to offering a portfolio of secure, trusted and localised cloud AI technologies to our customers and partners.”
The acquisition comes after Adani Energy Solutions, in December last year, announced a joint venture with an IHC unit to explore AI, blockchain and other technologies in a bid to deepen ties between the two conglomerates.
As per the statement released in December 2023, Adani Global and IHC’s Sirius International own 49% and 51% respectively in Sirius Digitech International Ltd, which is also based in Abu Dhabi.
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% to 24% in 2024, up from 4% 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.
