AM Green Announces Major AI Data Centre Investment in Uttar Pradesh
AM Green Group, owned by Greenko founders Anil Kumar Chalamalasetty and Mahesh Kolli, plans to invest approximately $25 billion to establish a 1 gigawatt artificial intelligence data centre in Uttar Pradesh. The company has signed an agreement with InvestUP, the state government's investment agency, with an official announcement expected soon.
Project Details and Timeline
The AI infrastructure hub will be located in the Greater Noida region of Uttar Pradesh. Development will proceed in phases, with the first phase targeted for completion by 2028. The entire project is scheduled to be operational by 2030.
This facility aims to serve global hyperscalers, frontier research labs, enterprises, and India's sovereign AI initiatives. It will operate using carbon-free energy solutions, leveraging AM Green's renewable energy capacity including wind, solar, and pumped storage supplies.
The project represents one of the largest investments in India's data centre space, potentially involving 500,000 high-performance chipsets. The memorandum of understanding was signed during the World Economic Forum in Davos.
Strategic Alignment with Greenko's Energy Assets
Industry sources indicate this move aligns with Greenko's strategy to utilize its surplus green energy generation. The company's existing round-the-clock green energy supply positions it well for power-intensive data centre operations.
AM Green will not depend on state-level power distribution contracts, enhancing business efficiency. The company is also exploring state subsidies for additional energy cost benefits.
AM Green is currently in advanced talks with Nvidia's vendor partners to source server infrastructure for the project, with production targeted to begin by March 2026.
India's Growing Data Centre Landscape
India's data centre sector is attracting significant investment as artificial intelligence adoption accelerates nationwide. According to a Deloitte report, India's AI market could reach $20-22 billion by 2027, growing at approximately 30% annually.
Despite hosting nearly 20% of global data, India currently accounts for only 3% of worldwide data centre capacity. This gap presents both strategic opportunity and national imperative for scaled AI data centre development.
Industry experts predict continued expansion through 2026 as major technology companies and domestic players commit long-term capital. Large Indian conglomerates possess advantages in this capital-intensive sector through land control, power access, and financial resilience against delays and regulatory challenges.
Recent Major Data Centre Investments in India
Several significant data centre announcements have emerged recently:
- Adani Group partnered with Google on a 1GW AI data centre in Visakhapatnam with $15 billion investment
- Reliance Industries' Digital Connexion announced another 1GW AI data centre in Visakhapatnam with $11 billion investment
- Tata Consultancy Services plans to spend up to $6.5 billion on 1GW data centre capacity across multiple locations
- Larsen & Toubro is investing up to $3 billion for at least 300MW data centre capacity over three years
These investments enable companies to use their own data centres for in-house AI and technology operations, providing greater cost control and service consistency across various business units.
AM Green's Broader Green Energy Initiatives
AM Green is simultaneously developing multiple green energy projects. The company is establishing production facilities for green molecules including hydrogen, ammonia, biofuels, and sustainable aviation fuels for hard-to-abate industries.
Through subsidiary AM Green Metals, the company is building a 1 million tonnes per annum primary aluminium smelter with associated refining and mining operations. AM Green has secured significant international investment, including a potential $1.4 billion stake acquisition by Stonepeak in its Luxembourg holding company.
The company has also attracted investments from Malaysia's Gentari and Singapore's GIC totaling $1.75 billion for its ammonia holdings. Additional partnerships include an MoU with Rio Tinto for the world's largest renewable-powered aluminium facility in India with approximately $6 billion investment.
State-run Coal India has committed to supply 4.5 gigawatts of renewable power to AM Green's green ammonia facilities. The company plans to produce 5 million tonnes of green ammonia annually, with the first 1 million tonne project in Kakinada expected to commence operations in 2026.
AM Green has already secured offtake agreements with major international buyers including Uniper, Yara, and Keppel, demonstrating strong market demand for its green energy products.
