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

The company has signed an agreement with InvestUP, the investment-oriented agency of the government of Uttar Pradesh. An announcement to this effect will be made soon.

“AM Green will set up an AI Infrastructure hub in Greater Noida district of Uttar Pradesh and the project will be developed in phases,” said one of the four people mentioned above.

The person added that the MoU was signed at the World Economic Forum in Davos.

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

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

The data center will leverage AM Green’s renewable energy capacity and will be powered by 24-hour carbon-free energy solutions including wind, solar and pumped storage resources from the group’s green energy projects.

The project will be one of the largest investments in the space in India and could include 500,000 units of the latest high-performance chipsets, the first person said.

Kolli, chairman of AM Green Group and chairman and joint managing director of Greenko Group, declined to comment. A spokesman for the Uttar Pradesh government could not immediately be reached.

Data centers fit Greenko’s strategy

The third person, who wished to remain anonymous, said: Mint Greenko’s data center play is “consistent with the company’s annual green energy production surplus.”

“Greenko’s availability of 24-hour green energy supply is one of the key factors that has pushed the group to enter data center operations, which is a power-intensive sector,” the person said.

The person said that the company will not rely on state-level contracts with energy distribution companies, which makes perfect sense from a business efficiency perspective. “The utility may also benefit from energy cost benefits through government subsidies, which it is currently examining and negotiating at the state level.”

Greenko’s arm is in talks with GPU maker Nvidia’s vendor partners to provide server infrastructure for the project, the fourth person said. Comprehensive negotiations are in the advanced stages and the production of the facility is aimed to be completed by March 2026.

With this investment, Greenko Ventures will become the latest Indian conglomerate to venture into the data center business.

Artificial intelligence support and data center investments

The data center space is attracting significant capital as the adoption of artificial intelligence accelerates. A report published by Deloitte in May last year stated that India was at a critical turning point as global artificial intelligence growth and domestic targets approached each other.

“The adoption of AI across the world continues to grow. India is also riding this digital wave. Poised to be one of the fastest-growing leaders in the field of AI, India’s AI market is expected to reach $20-22 billion by 2027, with a compound annual growth rate of 30%,” the report said.

It was stated that although India hosts approximately 20 percent of the world’s data, it accounts for only 3 percent of global data center capacity.

“The gap between India’s AI prospects and computing infrastructure presents a strategic opportunity and a national imperative to build AI data centers at scale,” Deloitte said. he said.

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

“Big Tech’s massive investments in the next five years are a long-term commitment to build infrastructure to create large technology ecosystems in India,” said Sanchit Vir Gogia, founder and managing director of technology consultancy Greyhound Research.

“This will attract interest from smaller companies specializing in data centres, as well as a larger group of companies that will meet the demand for data center space from legacy-listed Indian companies looking to adopt AI. This will accelerate multi-year investment commitments as well as actual spending to bring data centers live by 2026.”

Gogia also added that large domestic conglomerates naturally tend to invest in data centers, even though they are capital intensive. “Big conglomerates control the land and electricity and can afford to wait. These three characteristics allow them to absorb delays, cost inflation, parts shortages and regulatory disputes that would otherwise hurt thinner balance sheets.”

As a result, setting up in-house data center operations will help Greenko, as well as Tata, Adani, Reliance and L&T groups use their own data centers for in-house AI and technology service operations. This gives each of the companies greater control over cost and service integrity across conglomerates such as Tata’s Air India, Adani Power, Reliance Jio and L&T’s LTIMindtree.

Gogia also said, “Vertical integration in this context is less about ambition and more about conservation.” he said.

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

On October 9, Tata Consultancy Services said it would spend up to $6.5 billion on 1GW of net data center capacity spread across multiple locations. Larsen & Toubro, which formed an independent data center arm in November, will also invest up to $3 billion in data center capacities of at least 300 MW over the next three years.

Large data center investments

Greenko’s announcement will be among the first major data center investments of 2026, industry executives said.

Mint Recently, in one of the largest transactions in India’s green energy space, alternative investment firm Stonepeak was reported to have completed due diligence to acquire up to 15% stake in AM Green (Luxembourg) S.à rl (AMG Lux), AM Green’s holding company, in a potential deal valued at around $1.4 billion in equity capital.

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

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

Mint It was previously reported that Malaysia’s Gentari Sdn Bhd and Singapore’s GIC Holdings Pte Ltd planned to invest $1.75 billion in AM Green Ammonia Holdings, making it one of the world’s largest energy transition deals. Earlier, global mining giant Rio Tinto and AMG Metals & Minerals signed a Memorandum of Understanding to set up the world’s largest renewable energy-powered aluminum plant in India with an investment of around $6 billion.

State-run Coal India Ltd has also signed an MoU to supply 4.5 giga watts (GW) of renewable energy to AM Green’s green ammonia plants. 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 in a redesigned urea plant, acquired earlier this year, will cost around Rs 12,500 billion. AM Green has already signed sales agreements with major buyers, including Uniper, Yara and Keppel.