Clean Max Enviro Energy Solutions (CleanMax) and AI cloud provider Neysa plan a 2 GW AI compute factory in Kurnool district, Andhra Pradesh. CleanMax signed an MoU with the Andhra Pradesh Economic Development Board (APEDB) on 12 November 2026 to invest nearly ₹50,000 crore in clean power for the site, with commissioning targeted for March 2028.

The MoU was signed at the CII Partnership Summit 2026 in Visakhapatnam. It adds to a run of AI investments in the state, which this week also cleared its physical AI policy and land for a Reliance AI hub.

What the AI compute factory will include

According to CleanMax, the Green Compute Factory will come up in Kurnool district, and Neysa will anchor it with 1 GW of IT load. Media reports put the compute facility at about 600 acres in the Orvakal zone, with an investment of around ₹8,000 crore.

• 3 GW of wind and solar capacity and 1 GW of pumped hydro storage, built in phases
• At least 1.5 GW of renewable capacity proposed by 2029
• Battery storage and a CleanMax-run distribution network inside the park for round-the-clock supply
• Direct-to-chip cooling to limit water use, drawing on water allocated for industrial use

The project is expected to create about 1,000 direct and 1,000 indirect jobs. Neysa will also provide computing resources to research institutions in Andhra Pradesh, the company said.

Why build AI compute next to the power source

CleanMax founder and managing director Kuldeep Jain said compute is becoming one of the largest new sources of power demand and needs clean energy available every hour. In Andhra Pradesh, he said, generation, storage and distribution are being planned together with the compute load they will serve.

Jain also described the move as shifting a compute facility from a big city to a remote location, closer to where power is generated. The approach comes as India’s data centre pipeline grows faster than its usage. A recent study found that India’s GPUs run at about 20% utilisation despite $300 billion in data centre pledges.

Who is behind the project

Neysa is backed by Blackstone, which finalised a structured investment in the AI cloud startup earlier this year. Neysa’s GPUs are also being hosted at the new 22 MW STT GDC data centre in Noida.

Executives from CleanMax, Neysa and Blackstone, including Neysa founder Sharad Sanghi, met Andhra Pradesh IT and HRD Minister Nara Lokesh on the sidelines of the summit. “AI will run on compute, and compute will run on clean power,” Lokesh said, adding that the facility would create jobs for young people in the Rayalaseema region.

The state has already drawn large digital infrastructure bets, including Google’s planned hyperscale data centre in Visakhapatnam. The Kurnool project takes that push inland.

Skills and community plans

CleanMax said it will work with United Way of Hyderabad to upgrade local primary schools and anganwadis. It will partner with Pratham Education Foundation to train local youth for entry-level roles at compute facilities, and offer training in advanced cooling and power systems to final-year ITI and engineering students. Details are in the CleanMax press release.

Key takeaways

• CleanMax and Neysa plan a 2 GW AI compute factory in Kurnool, Andhra Pradesh, targeted for March 2028.
• CleanMax will invest nearly ₹50,000 crore in 3 GW of wind and solar plus 1 GW of pumped hydro to power it.
• Neysa, backed by Blackstone, will anchor the park with 1 GW of IT load.

FAQ

Where will the AI compute factory be built?

In Kurnool district of Andhra Pradesh, in the Orvakal zone, according to reports.

When will it be commissioned?

Commissioning is targeted for March 2028, with the power projects developed in phases.

Featured image: Andhra Pradesh IT Minister Nara Lokesh. Photo: Ntrtrust via Wikimedia Commons (CC BY-SA 4.0)

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