Greenko founders-backed AM Green to invest $25 billion for 1 GW AI data centre in Uttar Pradesh

The company has signed a memorandum of understanding (MoU) with InvestUP, the investment-focused agency of the government of Uttar Pradesh, at the World Economic Forum 2026 in Davos.

“AMG will establish an AI Infrastructure hub in the Greater Noida region in Uttar Pradesh with a total investment of $25 billion," said a statement by the group.

The first phase is expected to be developed by 2028, and the timeline for completion of the whole project is 2030.

The facility is designed to meet the requirements of global hyperscalers, frontier labs, enterprises, and India’s sovereign AI initiatives at scale and quickly, using carbon-free energy.

The data centre would leverage AM Green’s renewable energy capacity and would be powered by round-the-clock carbon-free energy solutions, including wind, solar, and pumped storage supplies from the group’s green power projects.

The project will be one of the largest investments in the space in India and would involve 500,000 latest high-performance chipsets, according to the company.

Chalamalasetty, group chairman, AM Group, said, "AMG AI labs' focus on valorising electron agents into intelligent tokens is a natural extension of our technology-first approach to our businesses as the global AI ecosystem races towards physical AI solutions."

“By combining 1 GW of compute capacity with our 24/7 green power solutions, we are not just building a data center, we are creating a sustainable template for the future of global AI infrastructure with the support from state of Uttar Pradesh," added Kolli, group president, AM Group.

Data centres fit Greenko’s strategy

A person in the know of the developments, requesting anonymity, told Mint that Greenko’s data centre play is “in line with the company’s surplus annual green energy generation."

“Greenko’s current status of having round-the-clock green energy supply is one major factor that pushed the group to venture into data centre operations, which is a power-intensive sector," the person said.

The company will not rely on state-level contracts with power distribution companies, which makes complete sense in terms of business efficiency, the person said. “Further, the entity can also reap energy cost benefits through state subsidies, which it is currently eyeing and is in talks with at the state level."

Another person said Greenko’s arm is in talks with GPU-maker Nvidia’s vendor partners to source server infrastructure for the project. Talks across the board are at advanced stages, with production of the facility targeted by March 2026.

AM Green, however, did not immediately respond to queries on its talks with Nvidia's vendor partners.

With this investment, Greenko Ventures would be the latest Indian conglomerate to venture into the data centre business.

AI push and data centre investments

The data centre space is drawing significant capital as AI adoption accelerates. A Deloitte report in May last year said that as global AI growth and domestic ambitions converge, India is at a critical inflection point.

“Worldwide, AI adoption continues to surge. India, too, is riding this digital wave. Poised to become one of the fastest-growing leaders in AI, India’s AI market is expected to reach $20–22 billion by 2027, posting a 30% CAGR," the report said.

It added that despite hosting nearly 20% of the world’s data, India accounts for only 3% of global data centre capacity.

“The gap between India’s AI aspirations and compute infrastructure presents a strategic opportunity and a national imperative to build AI data centres at scale," Deloitte said.

Industry experts say India’s data centre expansion will accelerate through this year as Big Tech and domestic players commit long-term capital.

“Big Tech’s massive investments over the next five years is a long-term commitment to setting up infrastructure to build large tech ecosystems in India," said Sanchit Vir Gogia, founder and chief executive of technology consultancy firm, Greyhound Research.

“This, in turn, will attract a larger set of companies that specialise in data centres, who will tap the demand for data centre space from smaller companies as well as legacy listed Indian companies looking to adopt AI. This would add up to further multi-year investment commitments, as well as accelerate actual spending to bring data centres live in 2026."

Gogia also added that large domestic conglomerates are naturally inclined to invest in data centres, despite these being capital-intensive. "Large conglomerates control land and power, and they can afford to wait. Those three traits allow them to absorb delays, cost inflation, component shortages and regulatory friction, which would otherwise cripple thinner balance sheets."

As a result, setting up in-house data centre operations is likely to help Greenko, as well as Tata, Adani, Reliance and L&T groups, use their own data centres for in-house AI and technology servicing operations. This gives each of the companies greater control over cost and service uniformity across holdings such as Tata's Air India, Adani Power, Reliance Jio and L&T's LTIMindtree, among others.

"Vertical integration, in this context, is less about ambition and more about protection," Gogia further said.

On 14 October, Adani Group partnered with Google in the latter’s 1GW AI data centre in Visakhapatnam, at a net investment of $15 billion. On 26 November, Reliance Industries’ data centre joint venture, Digital Connexion, announced another 1GW AI data centre in Visakhapatnam, at a net investment of $11 billion.

On 9 October, Tata Consultancy Services said it will spend up to $6.5 billion on 1GW in net data centre capacity, spread across multiple locations. Larsen & Toubro, which in November formed a standalone data centre arm, is also investing up to $3 billion for at least 300MW in data centre capacities in the next three years.

Large data centre investments

Greenko’s announcement would be among the first large data centre investments of 2026, industry executives said.

Mint recently reported that, in one of the largest transactions in India’s green energy space, alternative investment firm Stonepeak is doing due diligence to acquire up to 15% stake in AM Green’ holding company AM Green (Luxembourg) S.à r.l. (AMG Lux) in a potential deal having an equity value of around $1.4 billion.

AM Green is setting up production facilities for green molecules; including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and various downstream high-value chemicals, for decarbonization in hard-to-abate industries.

Through its wholly owned subsidiary AM Green Aluminium Metals and Materials (AM Green Metals), AM Green is also building a 1 million tonnes per annum (mtpa) primary aluminium smelter along with 2 mtpa of alumina refining and mining operations.

Mint earlier reported that Malaysia’s Gentari Sdn Bhd and Singapore’s GIC Holdings Pte Ltd plan to invest $1.75 billion in AM Green Ammonia Holdings, marking one of the world’s largest energy-transition deals. Earlier, global mining major Rio Tinto and AMG Metals & Minerals signed an MoU to establish the world’s largest renewable-powered aluminium facility in India, with an investment of about $6 billion.

State-run Coal India Ltd has also signed an MoU to supply 4.5 giga watt (GW) of renewable power to AM Green’s green ammonia facilities. AM Green also plans to produce 5 million tonnes per annum (mtpa) of green ammonia, with the first 1 mtpa project in Kakinada expected to be commissioned in 2026.

The project, which includes a green hydrogen unit and ammonia conversion plant at a repurposed urea facility acquired earlier this year, will cost about Rs12,500 crore. AM Green has already signed offtake agreements with major buyers, including Uniper, Yara, and Keppel.