India could soon play host to the largest data centre in the world, dwarfing the largest one by Microsoft that currently exists. Mukesh Ambani’s Reliance Industries, according to a Bloomberg report, could set up the aforementioned data centre in Jamnagar, Gujarat.
The data centre, once up and running, will provide the infrastructure necessary to support a wide range of AI applications, with Ambani planning aggressive pricing for AI services.
In pursuit of this goal, Reliance has reportedly begun to buy AI semiconductors from chipmaking giant Nvidia, including the company’s Blackwell AI processors. Both companies have collaborated several times over the past months – in September 2024, the two teamed up to develop AI supercomputers and LLMs. The Indian government is supportive of these developments as well – it has, so far, pledged over Rs 10,000 crore to fund startups, AI projects, and development of LLMs.
“It makes complete sense that India should manufacture its own AI. You should not export data to import intelligence. India should not export flour to import bread,” Jensen Huang, CEO of Nvidia, had commented on the development.
“We can use intelligence to actually bring prosperity to all the people and bring equality to the world. Apart from the US and China, India has the best digital connectivity infrastructure,” Ambani said.
With a proposed capacity of three gigawatts, the facility will surpass all current data centres globally, including the largest operational site today, Microsoft’s 600-megawatt centre in Virginia.
Data centres are usually measured in megawatts, which represents the amount of electricity that can be supplied to servers, cooling systems, and other equipment. Current leaders in the industry, including facilities in the US and China, operate with capacities under one gigawatt. This is where Reliance’s proposed data centre exceeds them – the three-gigawatt centre moves past these benchmarks.
Of course, setting up such a data centre would be an endeavour, since AI operations are inherently resource-intensive due to the computational demands of training and running large-scale machine learning models. According to reports, the project could cost between $20 billion and $30 billion.
According to reports, the proposed data centre will be mostly powered by renewable energy sources, leveraging an adjacent green energy complex. The complex is set to integrate solar, wind, and hydrogen power generation to reduce the reliance on non-renewable energy.
This development is part of a larger wave of global investments in AI infrastructure. Earlier this week, OpenAI, SoftBank, and Oracle pledged nearly $500 billion (including an immediate investment of $100 billion by OpenAI) to the Stargate Project, a system of data centres that aims to create AI infrastructure in the US. The amount will be invested over the next four years, and OpenAI claimed that it would “support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies.”
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