AM Group starts development of $25 billion AI data centre project in UP

AM AI Labs said that it has received land for the first two phases of its 1 GW AI data centre in Uttar Pradesh, with 350 MW capacity planned by 2028 and full commissioning targeted by 2030

Energy firm AM Group on Monday said that it has begun work on a 1 gigawatt (GW) artificial intelligence (AI) data centre project in Uttar Pradesh, following an agreement signed with the state government last month.

 

The energy transition group, backed by the founders of Greenko Group, had signed a memorandum of understanding with Invest UP at Davos, Switzerland, on January 20 to set up the facility.

 

AM AI Labs, an affiliate of the group, on Monday said that it has received a letter of intent from the Yamuna Expressway Industrial Development Authority (Yeida) for the allocation of land for the first two phases of the project. These phases will comprise 150 MW and 200 MW, respectively, forming part of the planned 1 GW AI and high-performance computing data centre, the company said.

   

It added that 350 MW of compute capacity is expected to be operational by 2028, with the full 1 GW to be online by 2030. The project represents an estimated $25 billion investment and the deployment of around 500,000 high-performance chips, it added.

 

"This is an enormously ambitious project, and that is exactly what excites us. AM Group has done this before. In green hydrogen and ammonia, we set out to deliver the lowest cost molecules in the world, and we are doing it. We bring the same conviction to AI. Our goal is to deliver the lowest cost, most efficient AI tokens on the planet, powered by clean energy we own and operate. By integrating the full value chain from power generation through silicon to token delivery, we can optimise across layers in ways that no single segment player can," said Anil Chalamalasetty, group chairman of AM Group.

 

An AI token is a unit of text (word, sub-word, or character) that an AI model processes during training and inference.

 

AM Group said the platform would be vertically integrated, spanning carbon-free power generation, data centre infrastructure, high-performance chips, software, applications and consumption models ranging from AI Pods as a service to tokens as a service.

 

It added that the facility would be powered by renewable sources and pumped storage assets managed through its in-house energy architecture. The tokens generated at the facility, it said, would support domestic and international demand for training, inference and other advanced use cases.

 

The announcement came on the same day that India commenced its AI Impact Summit in New Delhi. The country's data centre industry is one of the fastest-growing globally. This comes on the back of India's fast-evolving AI market, which, according to a Deloitte report, is expected to reach $20-22 billion by 2027, posting a CAGR of 30 per cent.