Reliance-Meta AI push: what it means for Indian data centers

The Ambitious Play: AI at Reliance

Look, Reliance isn’t just tweaking its business. It’s betting the next big engine will be artificial intelligence, aiming for a $30 billion valuation for its AI vertical. The plan uses a two‑track move: partner with tech giants like Meta and Google, while also racing in the AI market on its own. It’s bold, and yes, it’s personal for Indians who want cheaper, faster tech and new jobs at home.

So, Morgan Stanley and others think the core bet starts with a heavy push into infrastructure. Analysts say Reliance will pour $12-15 billion into AI infrastructure, starting with a 1 gigawatt (GW) data center powered by Reliance’s own green energy. This is designed to underpin 100 gigawatts of solar and 30-40 gigawatt-hours of battery storage. The idea? “Datacenter as a service” that rides on the strength of Jio’s telecom distribution network, letting Reliance sell AI capacity the way it sells connectivity. It’s a play to capture a huge slice of India’s AI infrastructure buildout, echoing Ambani’s knack for turning existing strengths into new growth engines.

Here's the thing: the strategy is not just about tech. It’s about scale, speed, and a real shot to outpace rivals. The collaboration with Meta, a 70:30 joint venture, centers on delivering open‑source AI models to Indian businesses. It’s a calculated mix of collaboration and competition—using Meta’s capabilities while actively taking on hyperscalers. That’s how the business case goes from “could work” to “this is going to redefine who builds India’s AI backbone.” The target uses a 2x book value ethos for the new entity, and Morgan Stanley talks of a potential 11% return on capital employed, based on current LLM pricing and shared-revenue models. The risk? Execution in a crowded, cutthroat field where timing, cost, and regulatory support can derail even the best plans.

Datacenter as a Service: Building India’s AI Backbone

Look, turning Jamnagar’s refining complex into a home for AI-ready datacenters isn’t a small shift. It’s rethinking energy, logistics, and local power grids. Reliance already has green power ambitions; coupling that with a 1GW facility could lower energy costs and improve reliability for hyperscale workloads. That matters for Indian companies hungry for AI tools—banking, healthcare, manufacturing, and government services all stand to gain. But there are hidden challenges: securing long‑term power supply, navigating land, water, and cooling needs, and staying ahead of global rivals who already run massive, hardened AI campuses. If Reliance can pull this off, the payoff isn’t just more servers; it’s a reliable AI backbone that accelerates domestic tech adoption and creates new local jobs.