Massive AI Infrastructure in Jamnagar
Mukesh Ambani’s Reliance Group is setting its sights on building what could become the world’s largest data center by capacity in Jamnagar, India. The ambitious project, estimated at a staggering three gigawatts of capacity, significantly outpaces existing global facilities, which typically max out at less than one gigawatt. According to sources familiar with the development, the billionaire has already begun acquiring Nvidia Corp.’s advanced AI semiconductors to fuel the data center’s operations.
This initiative aligns with a broader global surge in investments in AI infrastructure. Major players such as Microsoft, Alphabet, and Amazon are injecting billions into building advanced data centers, while projects like the Stargate initiative in the U.S. promise investments of up to $500 billion for AI infrastructure. If realized, Ambani’s data center would eclipse the largest U.S.-based facilities, like Microsoft’s 600-megawatt Boydton center in Virginia.
Aggressive AI Pricing Strategy
Mukesh Ambani’s competitive streak, which disrupted India’s telecom sector with ultra-low pricing for wireless services, now extends to AI. Reliance is planning to offer inferencing services—operating AI models like ChatGPT—at rock-bottom rates, a strategy that could transform the accessibility of AI in India. With inferencing costs being a major expense for startups and AI companies, this aggressive pricing could foster the development of AI-driven tools and solutions in the region.
The venture’s financial feasibility, however, raises questions. Experts estimate the cost of the Jamnagar facility at $20–30 billion, and while Reliance Industries has around $26 billion in its reserves, the exact funding strategy remains undisclosed. Nevertheless, the move represents a bold attempt to capitalize on the booming demand for generative AI services, with global data center demand projected to triple by 2030, according to McKinsey & Co.
Green Energy Ambitions and Challenges
Sustainability is a core aspect of Reliance’s data center plan. The Jamnagar facility will integrate renewable energy sources such as solar, wind, and green hydrogen from nearby Reliance green energy projects. These projects include a vast renewable energy complex spanning 5,000 acres, dedicated to producing photovoltaic panels, energy storage systems, and fuel cells.
Despite these efforts, maintaining consistent power solely through renewables presents challenges. Solar and wind energy are intermittent, and without robust backup systems—like nuclear or fossil fuel-based power plants—the facility may face hurdles in ensuring reliability. Experts suggest that fossil fuels might still support continuous operations at the massive data center.
Jamnagar, a vital hub for Reliance’s oil refining and petrochemical businesses, is set to become the focal point of the conglomerate’s expansion into cutting-edge technology and sustainable energy. By combining AI infrastructure with renewable energy goals, Ambani aims to establish India as a global leader in AI accessibility and innovation.
In his vision, Mukesh Ambani envisions making AI services affordable and universally accessible. “Our goal is to create the world’s lowest AI inferencing cost, right here in India,” he declared at Reliance’s annual shareholder meeting. As global demand for AI-capable data centers skyrockets, Ambani’s venture could position India at the forefront of the AI revolution.
