Reliance to Build Massive 3GW Data Center in India, Signaling AI Infrastructure Push

Reliance to Build Massive 3GW Data Center in India, Signaling AI Infrastructure Push

Mukesh Ambani’s Reliance Industries plans to build a 3-gigawatt data center in Jamnagar, India, aiming to meet the rising need for AI infrastructure. The proposed facility could become the world’s largest by capacity and significantly expand India’s data center footprint, currently under 1 gigawatt.

Key Points:

  • The planned facility in Jamnagar would be several times larger than any existing data center, with a 3-gigawatt capacity
  • Reliance aims to offer competitive AI inferencing costs to make AI more accessible in India
  • The project could require $20-30 billion in investment and will be powered significantly by renewable energy

The project represents a significant expansion of India's data center capacity, which currently stands at less than 1 gigawatt nationwide. Reliance CEO Akash Ambani has set an aggressive timeline for the facility, stating in a recent speech, "We want to complete it true Jamnagar style in record time — as we have always done in Jamnagar — in 24 months."

The timing of Reliance's move aligns with a global surge in AI infrastructure investments. Tech giants including Microsoft, Alphabet, and Amazon are pouring billions into data centers to meet the growing demand for AI services. This week alone, OpenAI, SoftBank, and Oracle announced plans to invest up to $500 billion in AI infrastructure through their Stargate Project initiative.

SoftBank, OpenAI, and Oracle Launch $500 Billion AI Infrastructure Initiative
Described as the largest AI infrastructure investment in history, Stargate will help transform the US into a global AI hub while addressing critical challenges like healthcare innovation and job creation.

Reliance's strategy appears focused on democratizing AI access in India. Mukesh Ambani emphasized this goal at a company shareholders' meeting last year, saying, "By leveraging our expertise in infrastructure, networking, operations, software, and data and by collaborating with our global partners, our goal is to create the world's lowest AI inferencing cost, right here in India."

The project faces significant challenges, particularly in terms of financing and power supply. Industry analysts estimate the facility could cost between $20 billion and $30 billion. While Reliance plans to power the data center primarily with renewable energy from its adjacent green energy complex, experts note that maintaining consistent power supply for such a large facility will likely require additional conventional power sources.

The choice of Jamnagar for this massive project is strategic. The city, located in Gujarat state, is already home to Reliance's world-largest oil refining complex and a developing green energy hub. The company is building a 5,000-acre complex there for renewable energy manufacturing, including solar panels, fuel cells, and wind turbines.

The partnership between Reliance and NVIDIA, which will supply AI semiconductors for the facility, underscores India's growing role in the global AI landscape. As Jensen Huang, NVIDIA's CEO, noted in a previous announcement, "It makes complete sense that India should manufacture its own AI. You should not export data to import intelligence."

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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