Uttar Pradesh Inks Historic $25 Billion Deal for AI-Focused Data Centre at Davos
In a landmark development for India's digital infrastructure landscape, the Uttar Pradesh government on Wednesday signed a monumental Memorandum of Understanding (MoU) worth $25 billion with AM Green, a prominent energy transition platform supported by the founders of Greenko Group. The agreement was formalized at the prestigious World Economic Forum (WEF) in Davos, Switzerland, marking a significant milestone in the state's technological advancement journey.
Unprecedented Investment Scale for Uttar Pradesh
The MoU, valued at approximately Rs 2.27 lakh crore, represents the single-largest investment proposal ever secured by the Uttar Pradesh government. According to a key member of UP's delegation present at Davos, this massive investment will be deployed over a five-year period, fundamentally transforming the state's digital infrastructure capabilities.
To appreciate the magnitude of this investment, consider these comparative figures: the total value of all 1,045 MoUs signed during the 2018 UP Investors' Summit amounted to Rs 4.28 lakh crore, while the state's budget for the 2025-26 fiscal year stands at Rs 8.08 lakh crore. This single agreement therefore represents a transformative commitment to Uttar Pradesh's technological future.
Project Timeline and Strategic Vision
The ambitious project will materialize through a phased implementation approach. The initial phase is projected to become operational by 2028, with the complete 1-gigawatt facility targeted for completion by 2030. A government spokesperson emphasized that this agreement will prove decisive in positioning Uttar Pradesh as India's leading data center and artificial intelligence hub under the leadership of Chief Minister Yogi Adityanath.
Officials revealed that the data centre will house approximately 500,000 advanced high-performance chipsets, establishing it among the largest AI-focused digital infrastructure initiatives in the country. The project aligns strategically with the Centre's Viksit Bharat 2047 vision, contributing significantly to India's technological sovereignty ambitions.
Distinguishing Features of the AI Hyper Scaler Facility
Unlike conventional data centres that primarily store information for retrieval, this facility represents a next-generation AI hyper scaler. As officials explained, this advanced infrastructure will not only store data but intelligently process and interpret it to identify patterns and trends applicable to sophisticated applications across multiple sectors.
For instance, in healthcare, the processed information could enable disease prediction and prevention mechanisms. The facility has been specifically designed to serve:
- Global hyperscalers
- Frontier AI research laboratories
- Large enterprise clients
- India's sovereign AI initiatives
This infrastructure will facilitate rapid deployment of large-scale AI workloads, positioning Greater Noida as a critical node in global AI infrastructure networks.
Sustainable Energy and Comprehensive AI Ecosystem
A defining characteristic of this facility will be its commitment to environmental sustainability through 24x7 carbon-free energy operations. The data centre will leverage AM Green's extensive renewable energy portfolio, which includes:
- Wind power solutions
- Solar energy installations
- Pumped storage systems
AM Green Chairman Anil Chalamalasetty stated that the group's entry into the AI full-stack ecosystem reflects its technology-first philosophy, aiming to deliver integrated solutions across multiple industries. President Mahesh Kolli emphasized that combining large-scale compute capacity with round-the-clock green power creates a sustainable template for future global AI infrastructure.
Broader Economic and Technological Impact
The project will anchor a comprehensive AI infrastructure hub in Greater Noida, capitalizing on Uttar Pradesh's industrial corridors, connectivity advantages, and progressive data centre policies to deliver low-latency, reliable digital services. Another delegation member in Davos highlighted how this initiative will leverage the state's strategic advantages to create a world-class digital ecosystem.
Beyond the core data centre, AM Green plans to develop an end-to-end AI ecosystem through its AMG AI Labs, encompassing:
- Energy infrastructure development
- Hardware installation and maintenance
- Customized AI model creation
- Application development frameworks
This comprehensive ecosystem is expected to support diverse use cases across multiple sectors including energy, healthcare, manufacturing, automotive, media, and gaming. Additionally, it will provide Indian developers with unprecedented access to advanced compute resources and chipset technologies.
Transformative Potential for Uttar Pradesh
Officials project that this landmark initiative will attract substantial foreign direct investment while generating thousands of high-skilled employment opportunities. The project represents a cornerstone in Uttar Pradesh's strategic ambition to emerge as India's premier data centre and digital innovation hub, potentially transforming the state's economic and technological landscape for decades to come.
The Greater Noida location offers particular advantages, including proximity to Delhi-NCR's talent pool, established industrial infrastructure, and strategic connectivity through road, rail, and air networks. This positions the project not merely as a data centre development but as a catalyst for broader technological transformation across northern India.
