Mukesh Ambani is set to build the world’s largest data center in Jamnagar, India. This bold move will support India’s AI growth and help Reliance evolve into a deep-tech powerhouse, meeting the rising demand for data centers across the country. Read this article for full details.
Mukesh Ambani’s Bold Move: Constructing the World’s Largest Data Center in Jamnagar
Mukesh Ambani, the chairman of Reliance Industries, is once again embarking on an ambitious venture. This time, he plans to build the world’s largest data center in Jamnagar, Gujarat, a city previously known for housing the world’s largest oil refinery built by his father, Dhirubhai Ambani, more than 25 years ago. This new project represents the remarkable evolution of Reliance, transitioning from a fossil fuel-based empire to a deep-tech and clean energy powerhouse.
When Dhirubhai set out to build the world’s largest oil refinery in Jamnagar, many believed it was an impossible task for an Indian company. Yet, against all odds, he achieved it. Now, Mukesh Ambani is making another bold move, this time in the rapidly growing data sector. To put this into perspective, the largest data centers today operate with a capacity of under 1 gigawatt, whereas Ambani aims to build a center with a capacity of 3 gigawatts-three times the current total data center capacity in India. This project highlights the nation’s urgent need for more data centers due to the growing digital economy, e-commerce, and the rise of artificial intelligence (AI), which demands more computing power.
Why India Needs More Data Centers? The Role of Growing Digitalization and AI
India’s demand for larger and more advanced data centers is driven by multiple factors. Including
- The increasing digitalization of the economy
- The spread of e-commerce, and
- New local data storage regulations.
However, the most significant driving force is the rise of AI and Generative AI (GenAI), which requires massive computational power. Ambani’s initiative is strategically timed to support India’s growing need for infrastructure capable of scaling AI technologies.
Reliance Industries Transformation: From Oil Giant to Deep-Tech Powerhouse
Reliance Industries, traditionally known for its oil refining business, took a major leap into the telecom sector a decade ago, transforming the market with ultra-cheap data offerings. Ambani famously said that “data is the new oil.” Now, as he plans the Jamnagar data center, it serves as a powerful symbol of Reliance’s transformation from an industrial giant into a deep-tech company.
At the 47th Annual General Meeting (AGM) of Reliance, Ambani discussed the company’s ongoing reinvention. While he previously focused on the concept of data as the new oil, he now envisions transforming Reliance into a deep-tech company by embedding cutting-edge technologies into every business sector. This includes incubating in-house innovations, integrating AI into all aspects of business, and building an AI-native digital infrastructure.
Reliance has already developed its own software stack, streamlining workflows and enabling real-time dashboards. Ambani revealed that Reliance invested over ₹3,643 crore ($437 million) in research and development (R&D) in FY24, bringing the total R&D expenditure over the past four years to ₹11,000 crore ($1.5 billion). With more than 1,000 scientists and researchers working across various fields, including bio-energy, solar, and AI, Reliance is laying the groundwork for a tech-driven transformation.
One of the major initiatives within this transformation is the development of Jio Brain, a suite of AI tools that spans the entire AI lifecycle. Jio Brain aims to accelerate AI adoption within Reliance and can eventually be offered to other enterprises.
How Reliance is Using AI to Drive Innovation Across Its Business Portfolio?
Reliance is already leveraging AI to improve its products and services. For example, its beauty and personal care brand, Tira, utilizes AI tools to enhance customer experiences. Tira’s “fragrance finder” suggests perfumes based on customers’ preferences, while the “skin analyzer” recommends products by analyzing a customer’s facial features through a photo. These innovations highlight how AI is reshaping the Indian beauty sector and enhancing customer engagement.
The Critical Role of Mukesh Ambani’s Data Center in India’s AI Revolution
Ambani’s Jamnagar data center is crucial for India’s AI ambitions. The data center, with an estimated cost of between $20 billion and $30 billion, will help address the gap in India’s AI infrastructure. As the country embraces AI technology, the demand for data centers is expected to continue growing, driven by sectors such as banking, financial services, IT, and e-commerce.
With the rise of 5G and the increasing use of mobile applications, demand for edge data centers in smaller cities like Bhubaneswar, Patna, and Kochi is also growing. By 2030, it’s projected that India’s data center stock will reach 3,400 MW, with major cities continuing to lead growth. India’s commerce minister, Piyush Goyal, has emphasized that India should aim to become the world’s largest destination for data centers, leveraging its reliable power grid, data security, and skilled workforce.
In addition to Ambani’s Jamnagar data center, India’s data center capacity is set to more than double by 2026-27. Leading global operators and investors, including Google, Amazon, and Microsoft, are expanding their data center networks in India, further fueling the country’s digital transformation.
How Mukesh Ambani’s Jamnagar Data Center Will Shape India’s Digital Future
Mukesh Ambani’s investment in building the world’s largest data center in Jamnagar marks a significant step in Reliance’s transition from a traditional oil business to a deep-tech giant. With AI and cloud computing driving the demand for data infrastructure, Ambani’s ambitious project will play a crucial role in supporting India’s digital and AI aspirations. As India’s data center capacity continues to grow, Ambani’s venture will provide the much-needed support to power the future of artificial intelligence and digital innovation in India.
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