Mukesh Ambani’s Reliance Industries Ltd may spend about USD 12-15 billion over the next few years on AI infrastructure that could include a giant 1GW data centre, Morgan Stanley said in a report.

Billionaire Mukesh Ambani’s Reliance Industries Ltd is likely to invest around USD 12–15 billion over the next few years to build artificial intelligence (AI) infrastructure, including a massive 1GW data centre, according to a report by Morgan Stanley.

At the company’s annual general meeting in August, Ambani unveiled a major plan into AI through a new subsidiary and a series of strategic partnerships. The newly formed wholly owned unit, Reliance Intelligence, will lead the conglomerate’s AI ambitions across four pillars Infrastructure (developing gigawatt-scale, AI-ready data centres), Partnerships (collaborating with global technology leaders to deliver advanced AI solutions in India), Services (creating AI-driven offerings for consumers, small businesses, and enterprises across sectors such as education, healthcare, and agriculture), and Talent (investing in upskilling and nurturing India’s AI workforce).

Reliance’s Mega AI Push

“Reliance has successfully reinvented itself every decade, and AI is poised to redefine its equity narrative once again,” Morgan Stanley said in the report. Gen AI deployment enables large-scale capital deployment while unlocking value through synergies across energy, digital, consumer, and media verticals.

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“We estimate that Reliance will spend approximately USD 12-15 billion on AI infrastructure to develop a 1GW datacenter, underwriting about 25 per cent of the capacity itself (roughly USD 7 billion for datacenter infrastructure and USD 5 billion for the 250MW of chips the company will deploy directly),” it said.

It is expected that the remaining capacity will be leased to hyperscalers and LLM providers as ‘Datacenter as a Service’.

The first phase of the data centre is already underway in Jamnagar, Gujarat.

“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 effort will leverage its joint venture with Meta on small language models, as well as partnerships with Google and Azure.”

Reliance AI Joint Venture With Meta

Reliance on Saturday announced a dedicated AI joint venture with Meta’s subsidiary, Facebook Overseas, Inc, named Reliance Enterprise Intelligence Ltd (REIL). The partners have committed an initial investment of Rs 855 crore, with Reliance Intelligence holding a 70 per cent stake and Facebook Overseas holding 30 per cent.

The venture will combine Meta’s open-source Llama AI models with Reliance’s business network to create and distribute enterprise AI services for Indian companies.

Reliance is also collaborating with Google to establish a dedicated cloud region in Jamnagar, combining Reliance’s infrastructure capabilities with Google’s AI and cloud technologies.

For ‘Datacenter as a Service’, it estimated annual revenues of around USD 1.5-1.6 million per MW.

“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. 

(With Inputs From PTI)