Reliance’s Mukesh Ambani Partners With Nvidia To Build World’s Largest AI-Powered Data Center In India - Details

Mukesh Ambani’s Reliance Group is setting the stage for a transformative leap in artificial intelligence (AI) infrastructure by developing what could become the world’s largest data centre by capacity. 

The ambitious project, located in Jamnagar, Gujarat, is expected to have a total capacity of three gigawatts, dwarfing current global data centre capacities.

According to sources familiar with the matter, the project will utilize Nvidia Corp.’s powerful AI semiconductors to deliver cutting-edge AI capabilities. Nvidia’s chips are pivotal for compute-intensive AI models, enabling tasks like inferencing—the operation of AI models such as OpenAI’s ChatGPT—at unprecedented scales.

Scaling New Heights in Data Center Capacity
The Jamnagar facility’s proposed three-gigawatt capacity is several times larger than existing data centers. For comparison, the largest operational data center today is Microsoft’s Boydton, Virginia, facility, with a capacity of nearly 600 megawatts. Market intelligence firm DC Byte estimates that current global data center capacities are far below Reliance’s proposed scale.

Data center capacity is measured in megawatts of electricity consumed by servers, cooling systems, and other equipment. Higher capacities directly translate to greater computing operations, a critical factor given the rising global demand for AI-driven solutions.

A Cost-Effective AI Future
Ambani is known for aggressive business tactics, having disrupted India’s wireless market by driving down costs and outpacing competitors. He appears poised to employ a similar strategy in the AI domain. At Reliance’s annual shareholders’ meeting last year, Ambani outlined his vision:

“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. This will make AI applications in India more affordable than anywhere else, making AI accessible to all.”
Inferencing costs, often a significant barrier for companies utilizing AI models, could be drastically reduced under Ambani’s plans. OpenAI and other startups currently face high operational costs for every user query, underscoring the need for cost-efficient solutions.

Funding and Challenges
The estimated cost of the Jamnagar project ranges between $20 billion and $30 billion, a massive investment even for Reliance Industries Ltd., which holds approximately $26 billion in cash reserves. While details about the project’s financing remain unclear, the scale of the endeavour underscores Ambani’s commitment to establishing India as a global AI hub.

Reliance executives declined to comment on the project’s specifics, as mentioned in the report by Bloomberg. 

Jamnagar: The Hub of Ambani’s Ambitions
Jamnagar, located in Prime Minister Narendra Modi’s home state of Gujarat, is already central to Reliance’s operations. The town hosts the world’s largest oil refining and petrochemical complex and is now a focal point for the conglomerate’s renewable energy initiatives.

Reliance is developing a sprawling green energy complex in Jamnagar, covering 5,000 acres. The site will feature factories for photovoltaic panels, fuel cell systems, green hydrogen, energy storage, and wind turbines. The new data centre will be integrated into these renewable energy projects to maximize sustainability.

However, experts caution that maintaining a continuous power supply for a facility of this magnitude may require backup from fossil fuels, nuclear reactors, or large-scale battery systems. While Reliance’s roots lie in petroleum products, its push into renewable energy reflects its evolving strategy.

India’s AI Leap
If realized, the Jamnagar facility would triple India’s current data centre capacity, which is estimated at less than one gigawatt. This expansion positions India to accelerate its AI development and compete on a global stage. The demand for AI infrastructure is skyrocketing as generative AI tools like ChatGPT become essential for businesses to streamline operations and enhance productivity.

McKinsey & Co. predicts that global data centre capacity could more than triple by 2030 to reach 219 gigawatts annually. The consultancy warns of a potential shortfall, particularly in the US, where a 15-gigawatt deficit is anticipated by the end of the decade. Reliance’s ambitious project could help address this looming capacity crunch while cementing India’s role in the AI ecosystem.

Global AI Investment Surge
Ambani’s plans align with a broader global push toward AI infrastructure. This week, OpenAI, SoftBank, and Oracle announced the Stargate Project, pledging to invest between $100 billion and $500 billion in US-based AI infrastructure. While specific details remain scarce, OpenAI CEO Sam Altman has suggested the development of five-gigawatt data centres.

AI Accessibility for All
Reliance’s vision to democratize AI aligns with Ambani’s history of making transformative technologies accessible. By leveraging advanced infrastructure, cutting-edge AI semiconductors, and cost-effective operations, the Jamnagar data center could redefine the global AI landscape. The project also holds the potential to catalyze India’s digital economy, empowering local startups and businesses to adopt AI technologies at scale.

(With Inputs From Bloomberg)