Reliance Industries Ltd., under the leadership of Mukesh Ambani, is embarking on an ambitious project to construct the world's largest data center in Jamnagar, India. The facility, with a planned capacity of three gigawatts, will significantly overshadow the current largest data center, Microsoft's 600-megawatt site in Virginia. The project, estimated to cost between $20 billion and $30 billion, represents a substantial investment in India's technology infrastructure.
The Jamnagar project will be powered predominantly by renewable energy, sourced from an adjacent green energy complex. This complex will harness solar, wind, and hydrogen power, underlining Reliance's commitment to sustainable development. The initiative aims to meet the growing demand for artificial intelligence (AI) applications, as Reliance has partnered with Nvidia to build the necessary infrastructure in India.
In preparation for this endeavor, Ambani is acquiring chips from Nvidia, further solidifying the collaboration between the two companies. Reliance's strategic move comes amid a global surge in AI demand, with tech giants like OpenAI, SoftBank, and Oracle committing up to $500 billion for AI infrastructure in the United States through their Stargate Project.
To support its growth initiatives, Reliance raised over $25 billion in 2020 from a consortium of high-profile investors. This group includes Meta, Google, Silver Lake, General Atlantic, KKR, Mubadala, and the Public Investment Fund. These investments have been pivotal in expanding Reliance's retail and telecom ventures, positioning the company as India's most valuable enterprise.
The proposed data center in Jamnagar is a cornerstone of Reliance's broader growth strategy. By capitalizing on the burgeoning AI market and leveraging their technological partnerships, Reliance seeks to reinforce its leadership position in the industry.
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