Ambani May Line Up $12-15 Billion AI Bet at Reliance
Reliance is building a 1GW AI data center in Jamnagar and could spend up to $15 billion as it rewrites its story around AI, Morgan Stanley said in a report
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[Image source: Chetan Jha/MITSMR India]
Billionaire Mukesh Ambani’s Reliance Industries Ltd (RIL) may deploy $12-15 billion over the next few years to build AI infrastructure, including a 1 gigawatt data center, Morgan Stanley said.
The conglomerate’s latest annual general meeting (AGM) signaled the shift to AI, with RIL announcing Reliance Intelligence Ltd, unveiling a Google Cloud partnership and outlining a tie-up with Meta that it has formally confirmed.
”We estimate that Reliance will spend approximately $12-15 billion on AI infrastructure to develop a 1GW datacenter, underwriting about 25% of the capacity itself (about $7 billion for datacenter infrastructure and $5 billion for the 250MW of chips the company will deploy directly),” it said.
Work on the gigawatt-scale data center has already begun in Jamnagar, Gujarat.
Excess capacity will be leased to large cloud and AI firms such as hyperscalers and LLM providers under a data center as a service model.
“We believe Reliance can utilize its initial 100MW of Gen AI datacenter capacity, which it has indicated will scale up over two years, to address inference demand from enterprises, as part of its enterprise stack offering and Sovereign AI initiatives,” it said. “This will leverage its joint venture with Meta on small language models, as well as partnerships with Google and Azure.”
AI is the new oil for the Ambani-led family group. Reliance has kept pace with re-inventing itself every decade, and AI is set to reshape its equity story, Morgan Stanley said in the report.
Reliance has announced an AI joint venture, Reliance Enterprise Intelligence Ltd (REIL), with Meta’s subsidiary, Facebook Overseas, Inc., with an initial investment of Rs855 crore.
”Given data centers are significant energy consumers, Reliance can also underwrite more than 20GW of internal power demand, supporting 100GW of its solar panel capacity and 30-40GWh of its own battery capacity,” it added.
