Reliance to Invest $30 Billion in Building World’s Largest AI-Driven Data Center in Jamnagar
Reliance Industries, led by Mukesh Ambani, has announced plans to build the world’s largest AI-powered data center in Jamnagar, India. This enormous project, set to cost between $20 billion and $30 billion, aims to support the growing demand for artificial intelligence (AI) services across the globe. Once operational, the data center will far surpass Microsoft’s current largest facility in Virginia, which has a capacity of 600 megawatts. The data center is scheduled to be operational by 2027
The proposed data center will be a critical infrastructure hub, designed to cater to the ever-growing needs of AI technologies. As AI applications continue to evolve rapidly, businesses and tech companies are in dire need of large-scale data storage and processing capabilities. Reliance’s initiative to build a state-of-the-art data center comes at an ideal time, as AI services continue to surge in demand globally. The facility, with a capacity of 3 gigawatts, will position India at the center of the global AI innovation ecosystem.
In addition to its size and scale, the Jamnagar data center will be powered by renewable energy, underscoring Reliance’s commitment to sustainability. A green energy complex, situated nearby, will generate energy using solar, wind, and hydrogen sources to supply the center. This environmentally-conscious approach aligns with Mukesh Ambani’s broader goal of advancing clean energy initiatives and reducing carbon footprints in India.
Reliance is also partnering with Nvidia, a leading AI chip provider, to equip the data center with cutting-edge technology. Nvidia’s advanced chips are crucial for handling the high demands of AI applications, making the collaboration a strategic move. In October 2024, Reliance and Nvidia formalized their partnership to develop AI infrastructure in India, marking a significant step forward in the country’s AI revolution.
Nvidia will supply the necessary AI chips for this ambitious venture, which comes at a time when tech companies globally are investing heavily in AI infrastructure. In the United States, major tech players like OpenAI, SoftBank, and Oracle have unveiled Project Stargate, a massive $500 billion investment initiative. Additionally, Meta’s CEO, Mark Zuckerberg, has announced that the company plans to allocate $65 billion in capital expenditure for 2025, with plans to build a 2GW+ data center large enough to cover a significant portion of Manhattan. This investment trend highlights the growing emphasis on AI infrastructure and the race to meet the increasing demand for data processing power
While Reliance is positioning itself to lead the AI data center market in India, the project will face stiff competition from global and domestic players. Major companies like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are rapidly expanding their AI and cloud services across India, capitalizing on the country’s growing need for AI computing power. Indian companies, such as the Adani Group, IBM, and CtrlS, are also investing heavily in AI-focused data centers, further intensifying the competition.
Reliance’s ambitions extend beyond building infrastructure. Through its telecom arm, Jio, the company is driving significant AI innovations. Jio has already launched several AI-driven services, such as Jio Phone Call AI, which offers real-time call transcriptions to enhance communication. Additionally, Jio AI Cloud Services provides consumers with 100 GB of storage for AI-powered applications, further pushing the envelope on accessible AI tools.
Moreover, Jio has introduced Jio Brain, a machine-learning platform aimed at offering AI services to businesses. This platform provides advanced tools, such as agentic models, to automate tasks and streamline business processes. With these initiatives, Jio is playing a crucial role in not only providing infrastructure but also developing AI products and services that cater to both businesses and consumers.
With its massive investments in data infrastructure, strategic partnerships, and AI-driven services, Reliance is positioning itself at the forefront of India’s AI revolution. The company, through its telecom arm Jio, is working on a range of AI applications that promise to transform the technological landscape in India and globally. As AI continues to shape the future of industries and economies, Reliance’s initiatives are set to make a lasting impact on the AI ecosystem, driving growth and innovation.
