Clean energy is increasingly shaping how India plans its future AI infrastructure. With artificial intelligence workloads growing rapidly and data centres consuming large amounts of electricity, the focus is shifting toward powering this expansion through renewable and carbon-free sources. As energy demand from digital infrastructure rises, integrating sustainability into large-scale compute projects is becoming a practical step to balance growth with responsible resource use.
This approach also aligns with the government’s Viksit Bharat 2047 vision, which aims to position India as a developed and technologically advanced economy. By encouraging investments that combine clean energy with digital infrastructure, the larger goal is to strengthen economic growth while keeping sustainability at the centre of long-term planning.
In a major step in that direction, AM Group has commenced development of its 1 GW High Performance Compute (HPC) and AI hub in Uttar Pradesh, translating India’s push for sustainable, large-scale AI infrastructure into action. The energy transition platform, backed by the founders of Greenko Group, had earlier signed a Memorandum of Understanding (MoU) with Invest UP, Government of Uttar Pradesh, at Davos, Switzerland on January 20, 2026.
Taking the project forward, AM AI Labs, an affiliate of AM Group, has now received a Letter of Intent (LoI) from the Yamuna Expressway Industrial Development Authority (YEIDA) for allocation of land parcels. The first two phases of the project will comprise 150 MW and 200 MW respectively, forming part of the cumulative 1 GW AI and high-performance computing data centre planned in the state.
Under the rollout plan, 350 MW of compute capacity is expected to come online by 2028, with the full 1 GW operational by 2030. The development represents an estimated $25 billion investment and will involve deployment of nearly 500,000 high-performance chips, making it one of the largest technology infrastructure investments in the country to date.
The project is designed as a fully vertically integrated AI platform, spanning owned carbon-free power generation, data centre infrastructure, high-performance chips, software stack, AI applications, and flexible consumption models ranging from AI Pods as a Service to Tokens as a Service.
A key differentiator is its energy architecture. The platform will be powered by firm, on-demand carbon-free energy enabled by renewables and strategic pumped storage assets, managed through an in-house intelligent cloud energy system. From power generation to data centre design, liquid cooling, accelerator selection and software integration, each layer is engineered together to optimise energy-to-compute efficiency.
India, currently the second-largest AI compute consumption market globally, is expected to benefit from domestically generated tokens for advanced AI applications, training, and inference use cases. The hub is also positioned to serve global markets.
The project is expected to attract significant foreign direct investment (FDI) and generate thousands of high-skilled jobs, positioning Uttar Pradesh as a key AI infrastructure destination.
Commenting on the development, Anil Chalamalasetty, Group Chairman of AM Group, said the company aims to deliver the lowest-cost and most efficient AI tokens globally by integrating the entire value chain from power generation to silicon to token delivery.
With development now underway, the project marks a significant milestone in India’s ambition to build sustainable, large-scale AI infrastructure backed by clean energy.
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