Whalesbook
New AI Compute Venture Launched
A new venture by AM Group's AMI Labs and OXMIQ Labs aims to provide sustainable, carbon-free power for India's growing AI compute needs. Success for this alliance will depend on overcoming complex, capital-intensive execution challenges in a highly competitive market.
Building Sustainable AI Infrastructure
AMI Labs, backed by Greenko Group's promoters, is joining forces with OXMIQ Labs, led by former Intel executive Raja Koduri. Their goal is to build 2 GW of renewable-powered AI compute capacity in India by 2030. The partnership will focus on creating a robust, sustainable AI infrastructure. The first phase includes a 1 GW compute hub in Uttar Pradesh, set to start operations by the end of 2027. OXMIQ Labs will offer key advice on system architecture, hardware, and supply chain, drawing on Koduri's deep experience. This project seeks to solve the major challenge of securing reliable, carbon-free power for AI's high energy demands. Anil Chalamalasetty, AM Group chairman, noted OXMIQ's role in developing world-class infrastructure. Koduri stressed that smart early design choices are vital for offering lower-cost AI compute powered by green energy. The plan envisions a fully integrated system, including renewable power, data centers, accelerators, software, and services like AI Pods-as-a-Service.
The Competitive Onslaught
India's data center market is booming, fueled by rising data use, cloud services, data localization rules, and the growth of AI. Experts predict India's data center capacity could jump fivefold to 8 GW by 2030, needing around $30 billion in investment. This expansion is attracting huge investments from global cloud providers and Indian companies. Amazon Web Services (AWS) is investing $7 billion in Telangana and $8.3 billion in Maharashtra, part of a $12.7 billion total commitment by 2030. Microsoft plans a $3 billion investment, with its Hyderabad data center due by June 2026. Google is building a major AI data center hub in Visakhapatnam. On the domestic front, Reliance Industries plans to invest over $120 billion in seven years for gigawatt-scale AI data centers, including a 3 GW facility in Jamnagar. Adani Group is investing $100 billion by 2035 for AI-ready data centers, aiming for 5 GW capacity and a $250 billion AI ecosystem. AMI Labs' 2 GW goal is a notable contribution, but the market sees individual competitors planning similar or larger capacities. Greenko Group Plc (LON:GKO), the promoter's listed entity, had a share price of 1.01 on March 16, 2026.
Challenges and Risks Ahead
The project faces significant risks and a saturated market. Developing a fully integrated AI compute infrastructure from scratch is a highly complex and costly endeavor. Although Greenko Group has a strong history in large renewable energy projects, including a $700 million funding round in March 2023, the AI compute sector presents unique difficulties. The vast capacity planned by competitors like hyperscalers, Reliance, and Adani raises concerns about future pricing and potential oversupply. AMI Labs' 2 GW goal by 2030 must compete against a projected total Indian capacity of 8 GW, with much of that already secured by others. Additionally, rapid technological changes in AI hardware and software require constant updates and significant new investments, increasing risk. Recent geopolitical events in West Asia have prompted cloud providers like AWS and Microsoft to consider shifting workloads to India, potentially boosting local investment and demand. However, these events also highlight how global infrastructure plans can be volatile.
Future Outlook
India's AI compute market is set for rapid growth, with demand expected to soar as AI adoption spreads across industries. Government support, such as tax breaks for green facilities and simplified approvals, should speed up development. This landscape offers a significant chance for companies like AMI Labs to gain a strong position. However, success will depend on efficient execution, effective cost management, and securing continuous funding to stand out among numerous competitors aiming for dominance in India's digital future.