Reliance Aims to Build World’s Largest AI Data Center in India

1. Unprecedented Scale:
   • The Jamnagar facility, which will be the new data center in India, will have a 3-gigawatt capacity, dwarfing Microsoft’s current largest data center (600 megawatts in Virginia).
   • Estimated cost: $20–30 billion, with construction adjacent to a renewable energy complex producing solar, wind, and hydrogen power.
   • The new data center in India is expected to be completed within 24 months, reflecting Reliance’s aggressive timeline and execution capabilities.
2. Data Center – Additional Insights
   • Reliance is building a 5,000-acre green energy complex in Jamnagar, including factories for photovoltaic panels, fuel cell systems, green hydrogen, energy storage, and wind turbines.
   • Jamnagar’s Strategic Importance: Located in Gujarat, Prime Minister Narendra Modi’s home state, Jamnagar is already home to Reliance’s world’s largest oil refining and petrochemicals complex. The town’s transformation into a hub for renewable energy and AI infrastructure underscores its strategic significance.
   • Government Support : India’s government has pledged nearly $1.2 billion to finance AI projects, complementing Reliance’s ambitious plans. Other major data center projects are also underway in India, such as those by CtrlS in Ahmedabad and Ursa Clusters in Hyderabad.
3. Vision and Strategy
   • India’s Role : With substantial government backing and private sector initiatives, India is poised to become a significant player in the global AI infrastructure landscape, potentially alleviating some of the global capacity challenges.
   • Ambani’s Vision: Mukesh Ambani has emphasized leveraging Reliance’s expertise in infrastructure, networking, and software to create a globally competitive AI ecosystem in India. His aggressive pricing strategy aims to disrupt the AI market, mirroring his successful tactics in the telecom sector.
4. Renewable Energy Focus:
   • The data center will draw power from a dedicated green energy site, aligning with India’s goal to achieve 50% renewable energy by 2030.
   • However, the intermittent nature of solar and wind power may necessitate backup from fossil fuels or large-scale battery systems to ensure a continuous energy supply.
   • Nuclear power, through companies like TerraPower founded by Bill Gates, is being explored as an additional option to meet the energy demands of data centers.
5. Strategic Partnerships:
   • Nvidia Collaboration: Announced in October 2024, Reliance will use Nvidia’s chips to build AI infrastructure. Jensen Huang, Nvidia’s CEO, highlighted the importance of local AI manufacturing during a meeting last summer in Las Vegas, stating that India should not export data to import intelligence. He emphasized reducing costs and energy consumption through accelerated computing, which aligns with Reliance’s goals.
   • Investor Backing: Raised $25 billion in 2020 from Meta, Google, Silver Lake, KKR, and others to fund Reliance’s telecom and retail ventures.
6. Economic Impact:
   • Reliance, India’s most valuable company, aims to boost the country’s AI capabilities, potentially creating thousands of tech jobs and attracting foreign investment.
   • The project could triple India’s current data center capacity (less than 1 gigawatt), accelerating AI development in the world’s most populous nation.
   • Reliance plans to offer lowest-in-the-world AI inferencing costs, making AI applications more affordable and accessible in India.
   • Regional Growth : Other cities like Hyderabad are becoming focal points for data center development, supported by both private and public investments.
   • Ursa Clusters and Tillman Global Holdings have announced multiple data center projects in Hyderabad, indicating a broader trend towards expanding India’s digital infrastructure.
7. Global Context:
   • Follows OpenAI, SoftBank, and Oracle’s $500 billion Stargate Project for U.S. AI infrastructure, signaling a global AI arms race.
   • Global Demand and Supply Challenges: The rapid adoption of generative AI tools is expected to create a capacity crunch, with the U.S. alone facing a potential shortfall of 15 gigawatts by 2030. Reliance’s project could help alleviate some of this global demand pressure.
   • Microsoft, Google, and Amazon are also investing heavily in data centers to meet the growing demand for AI capabilities.
   • A 1.2-GW data center under construction in Portugal highlights the growing international focus on large-scale data centers, but Reliance’s 3-gigawatt capacity still sets it apart.
   • Sam Altman of OpenAI has proposed building 5-gigawatt facilities, though specifics remain unclear.
8. Technological and Market Trends:
   • The emergence of generative AI, such as OpenAI’s ChatGPT, is driving a surge in demand for data centers equipped to handle AI workloads.
   • Global data center capacity is projected to more than triple by 2030, reaching 219 gigawatts annually , with potential supply deficits in key markets like the U.S.

Conclusion

Reliance Industries’ Jamnagar data center project represents a bold step toward establishing India as a global AI powerhouse. By combining unprecedented scale, renewable energy integration, and strategic partnerships, the initiative not only addresses India’s growing digital needs but also sets a new benchmark for sustainable and affordable AI infrastructure worldwide. As the global AI race intensifies, Reliance’s efforts could significantly influence the future of AI development and deployment, both in India and beyond.

Why This Matters

• Tech Leadership: The new data in India positions the country as a competitor in the global AI sector, reducing reliance on U.S. and Chinese infrastructure.
• Sustainability Benchmark: Sets a precedent for large-scale renewable-powered data centers, addressing climate concerns.
• Economic Growth: Could catalyze India’s digital economy, projected to reach $1 trillion by 2030, while advancing sectors like healthcare, agriculture, and smart cities.
• Affordable AI: By driving down inferencing costs, Reliance aims to democratize AI access, fostering innovation and adoption across industries.
• Government Investment : The Indian government’s financial support for AI projects demonstrates a strong commitment to fostering technological advancements and economic growth, further solidifying India’s role in the global AI race.