Reliance Industries, India's largest conglomerate led by Mukesh Ambani, has unveiled a monumental investment plan of ₹10 trillion (approximately $110 billion) to build artificial intelligence infrastructure across India over the next seven years. The announcement was made during the AI Impact Summit in New Delhi, which attracted global tech leaders including Google CEO Sundar Pichai and OpenAI co-founder Sam Altman.
The comprehensive plan involves constructing gigawatt-scale data centers, AI computing facilities, and a nationwide edge computing network, with the first phase in Jamnagar, Gujarat offering over 120 megawatts of capacity and becoming operational in the second half of 2026. Reliance's telecom unit Jio Infocomm will integrate AI services with its existing platform, aiming to replicate its success in reducing mobile data costs by similarly making AI services more affordable.
A key strategic element is the integration of renewable energy projects with data center operations. Reliance plans to utilize up to 10 gigawatts of surplus solar power from projects in Gujarat and Andhra Pradesh, allowing the company to sell excess electricity back to the grid if AI demand slows, thereby ensuring financial flexibility and steady returns. This approach mirrors similar efforts by the Adani Group, which is developing a 30-gigawatt renewable energy park in Gujarat to power its data center expansion.
India's broader AI ambitions are reflected in the government's expectation of over $200 billion in AI infrastructure investments over the next two years. This includes Google's $15 billion AI infrastructure hub in Visakhapatnam (in partnership with AdaniConnex), Amazon's $12.7 billion cloud infrastructure initiative running through 2030, and OpenAI's partnership with Tata Group to develop 100 megawatts to 1 gigawatt of AI capacity. Additionally, Tata Electronics has announced an $11 billion investment in a chip fabrication plant in Gujarat.
Mukesh Ambani emphasized the strategic imperative behind the investment, stating that "India cannot afford to rent intelligence" and highlighting that "the biggest constraint in AI today is not talent or imagination. It is the scarcity and high cost of compute." The initiative aims to develop AI capabilities in multiple Indian languages and embed AI across vital sectors including manufacturing, logistics, agriculture, healthcare, and financial services.
The stock market responded positively to the announcement, with Reliance Industries' shares rising slightly on Monday. Analysts suggest this coordinated $125 billion effort (combining Reliance's $110 billion with Tata's $11 billion and other investments) positions India to compete with the U.S. and China in AI technology, potentially shifting the country's role from traditional back-office services to becoming a global producer and exporter of AI compute power and solutions.
