Reliance industries to invest $15 billion in AI infrastructure over next few years

Mukesh Ambani’s Reliance Industries Ltd (RIL) is set to make one of its largest technology bets yet, with an estimated USD 12–15 billion investment in artificial intelligence (AI) infrastructure over the next few years. The plan includes building a gigawatt-scale AI-ready data centre and forming global partnerships to strengthen India’s AI ecosystem, according to a Morgan Stanley report.

The investment underscores RIL’s ambition to become a foundational player in India’s emerging AI economy, mirroring its past transformations in telecom, retail, and energy.

Reliance’s next growth engine :

At its annual shareholder meeting in August, Ambani announced the creation of a new subsidiary Reliance Intelligence Ltd to lead the company’s AI expansion. The business will focus on four growth pillars:

• Infrastructure: Setting up 1GW-scale AI data centres.

• Partnerships: Collaborating with global technology companies to bring AI to India.

• Services: Building AI-driven products for consumers, enterprises, and public sector applications.

• Talent: Developing India’s AI workforce through skilling and academic programs.

Morgan Stanley said this pivot positions Reliance for another decade of structural growth. “AI is set to reshape Reliance’s equity story. GenAI investments can drive capital deployment while unlocking value across its digital, energy, and consumer segments,” the report noted.

Massive capital deployment ahead :

The report estimates Reliance will invest around USD 7 billion in the physical data centre infrastructure and another USD 5 billion toward AI chips equivalent to 250MW of compute capacity. Reliance will underwrite about 25% of the total 1GW capacity, while the rest will be offered as ‘Datacenter as a Service’ to hyperscalers and large language model (LLM) providers.

The first phase of construction is already in progress in Jamnagar, Gujarat, where Reliance plans to operationalize an initial 100MW of capacity over the next two years. This facility will cater to enterprise AI workloads and sovereign AI initiatives, serving as the backbone of India’s AI infrastructure.

Strategic partnerships to build AI scale :

Reliance has announced a new joint venture with Meta’s subsidiary, Facebook Overseas Inc., to create Reliance Enterprise Intelligence Ltd (REIL). The venture, with an initial investment of ₹855 crore, will see Reliance holding 70% and Meta 30%. It will combine Meta’s open-source Llama AI models with Reliance’s enterprise network and market access to provide AI services for Indian businesses.

In parallel, Reliance is collaborating with Google to establish a dedicated cloud region in Jamnagar, integrating Google’s AI and cloud stack with Reliance’s infrastructure expertise. Reliance also has ongoing collaborations with Microsoft Azure for enterprise AI deployments.

Financial outlook and energy integration :

Morgan Stanley projects a Return on Capital Employed (ROCE) of around 11% from Reliance’s early AI investments. The emerging ‘Datacenter as a Service’ model could generate annual revenues of USD 1.5–1.6 million per MW, implying a potential billion-dollar recurring revenue stream when fully operational.

The energy component of this investment offers additional upside. Data centres are high energy consumers, and Reliance’s strong position in renewable energy allows it to self-sustain operations. The company can potentially underwrite over 20GW of internal power demand, leveraging its 100GW solar panel and 30–40GWh battery storage capacity.

AI meets energy and digital synergies :

Reliance’s integrated model linking AI, renewable energy, and digital infrastructure could deliver powerful synergies across its verticals. Analysts say the AI initiative may replicate the company’s success in Jio’s telecom revolution, where large-scale infrastructure investments created enduring enterprise and consumer value. “Reliance is building the infrastructure backbone for India’s AI economy. The strategy not only aligns with global AI growth trends but also reinforces India’s self-reliance in digital and energy domains,” Morgan Stanley said. Reliance’s USD 12–15 billion AI bet signals a major shift toward data-driven infrastructure. With global partnerships, high ROCE projections, and deep vertical integration, the conglomerate is positioning itself as India’s primary AI infrastructure enabler.