Is India Set to Host the World's Largest AI Data Center? Reliance Group Thinks So

Mukesh Ambani's Reliance Group has unveiled plans for what might become the world's largest data center by capacity in a significant move that could reshape the global AI infrastructure landscape. Located in Jamnagar, India, this ambitious facility is projected to reach an unprecedented three gigawatts of capacity—a scale that would fundamentally transform India's position in the global AI ecosystem.

Breaking New Ground in Data Center Scale

The planned Jamnagar facility starkly contrasts with today's leading data centers, which typically operate below one gigawatt capacity. Even the Sines data center in Europe, which is among the largest currently under development, is expected to barely exceed one gigawatt when fully operational. If completed as envisioned, Reliance's facility would establish a new benchmark for data center scale globally.

This expansion is critical as data center capacity becomes vital to support growing AI workloads. Industry analysts at McKinsey & Co. project that global data center capacity could more than triple by 2030, reaching approximately 219 gigawatts annually—yet still potentially falling short of demand.

Democratizing AI Through Competitive Pricing

A central element of Reliance's strategy involves leveraging this massive infrastructure to offer AI inference services at significantly reduced costs. Ambani, the 67-year-old chairman and managing director of Reliance Group, has publicly committed to creating "the world's lowest AI inferencing cost, right here in India."

This approach mirrors Ambani's previous market strategies, particularly in telecommunications, where aggressive pricing disrupted established competitors and transformed market dynamics. By investing heavily in NVIDIA's AI semiconductors and building at unprecedented scale, Reliance appears positioned to replicate this disruptive approach in the AI services market, potentially.

"By leveraging our expertise in infrastructure, networking, operations, software, and data and by collaborating with our global partners, our goal is to make AI applications in India more affordable than anywhere else, making AI accessible to all," Ambani stated last year.

Strengthening India's Digital Sovereignty

Beyond commercial considerations, the Jamnagar facility represents a strategic move to strengthen India's digital infrastructure independence. Currently, India's total data center capacity sits below one gigawatt—meaning this single project could potentially triple the nation's capacity by 2027.

This expansion addresses a critical need as India's AI adoption accelerates across both its thriving startup ecosystem and established enterprises. By providing localized AI compute resources, the facility would reduce reliance on overseas infrastructure while potentially positioning India as a self-sufficient AI hub with global reach.

Reports indicate that Reliance also intends to power the new data center predominantly with renewable energy, aligning with global sustainability imperatives while enhancing the project's long-term viability.

The Global AI Infrastructure Race

Reliance isn't alone in pursuing massive AI infrastructure development. Tech giants, including Microsoft, Alphabet, and Amazon, are investing billions in expanding their data center footprints specifically for AI workloads. Meanwhile, the Stargate Project in the United States has attracted commitments from OpenAI, SoftBank, and Oracle ranging from $100 billion to $500 billion.

Despite these substantial investments, experts predict a significant capacity shortfall will persist. The United States alone may face a 15-gigawatt gap by 2030, requiring twice the data center capacity that has been built since 2000.

Looking Ahead

As Reliance moves forward with its ambitious plans, the project raises important questions about the global distribution of AI compute resources. If successful, the Jamnagar facility could help address some of the projected global demand while simultaneously reshaping India's role in the international AI landscape.

While these massive infrastructure projects take shape, businesses and researchers continue to seek immediate access to AI compute resources through alternatives like cloud GPU rental services, which provide flexible scaling without requiring direct infrastructure investment.

The race to build sufficient AI infrastructure continues globally. Reliance's three-gigawatt ambition represents one of the boldest statements yet about the scale needed to power the next generation of AI innovation.