Mukesh Ambani to Build the World’s Largest Data Center in India

Mukesh Ambani, the billionaire chairman of Reliance Industries, is set to construct what could become the world’s largest data center in Jamnagar, India. This massive facility, with an expected capacity of 3 gigawatts, will far exceed the size of current data centers, which typically operate at less than 1 gigawatt. The project is part of a broader wave of investments in AI infrastructure, driven by the surging demand for artificial intelligence services globally.

Ambani’s Reliance Group is joining major tech giants such as Microsoft, Alphabet, Amazon, and others who are pouring billions of dollars into data centers to support AI capabilities. The move follows an aggressive strategy that has been a hallmark of Ambani’s business approach, especially in the wireless and telecom industries. The Jamnagar data center is set to be one of the largest of its kind, with the potential to greatly enhance India’s AI capabilities.

Image credit: The Reliance Industries’ oil refinery in Jamnagar.Photographer: Dhiraj Singh/Bloomberg

The new data center will house advanced AI semiconductors from Nvidia and be positioned as a global hub for AI inferencing services. Ambani has already expressed his intent to provide these services at rock-bottom rates, making AI more affordable, particularly for Indian businesses. AI inferencing refers to the process of operating AI models, like those used in ChatGPT, and it’s a resource-intensive process that companies like OpenAI rely on. The affordability of these services will play a significant role in the growing AI landscape.

The project is expected to cost between $20 billion and $30 billion, with Reliance’s parent company, Reliance Industries, holding approximately $26 billion in reserves. Once operational, the data center will more than triple India’s current data center capacity, which is under 1 gigawatt, and position India as a leading force in AI development.

Ambani’s plan also includes powering the data center with renewable energy, taking advantage of Reliance’s existing green energy projects in the region. While solar and wind energy will be key components, the data center will likely require backup from more consistent power sources, such as fossil fuels or nuclear energy, to ensure reliable operations.

This ambitious project is set to position India as a major player in the global AI infrastructure race. As demand for data center capacity continues to grow, especially with the rise of generative AI tools like ChatGPT, Ambani’s data center could be pivotal in addressing the looming capacity shortage that experts predict will occur by 2030.