Meta partners with Reliance on first India AI data centre

[NEW DELHI] Meta Platforms is partnering with Reliance Industries to build its first artificial intelligence data centre in India, adding to a wave of investment in tech infrastructure globally.

As part of the deal, tycoon Mukesh Ambani’s Reliance will build a 168 megawatt (MW) data centre in Jamnagar – where it also runs the world’s largest single-site oil refinery – that Facebook’s parent will lease, the companies said on Wednesday (Jun 10).

The two companies did not offer more details on the project, which has an option to expand over time. Reliance’s shares gained as much as 2.5 per cent before paring some gains.

India is attracting growing investment from major tech companies, including a combined US$52 billion from Amazon.com and Microsoft this year, underscoring the country’s rising status as a key growth market.

Much of that is going into the infrastructure India urgently needs to develop and operate AI services, which will be key to fulfilling the government’s vision of building an industry to keep pace with the US and China.

In another major deal unveiled this year, OpenAI partnered with Indian conglomerate Tata Group to build a data centre starting at 100 MW of capacity, with plans to scale up to one gigawatt (GW). At the upper end, a one GW facility can cost between US$35 billion and US$50 billion.

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The Meta-Reliance tie-up boosts a relationship that began around 2020 when the Menlo Park, California-headquartered firm made a US$5.7 billion investment in Jio Platforms, the tech and telecommunications arm of the Indian conglomerate.

“This world-class facility in Jamnagar will help us scale our AI infrastructure globally while deepening our long-term investment in India’s economy,” Meta CEO Mark Zuckerberg said.

Separately, the company will also contract 837 MW of renewable energy through an agreement with Clean Max Enviro Energy Solutions. The news sparked a more than 15 per cent gain in Clean Max shares. BLOOMBERG