Mukesh Ambani plans to build largest AI-driven data centre in Jamnagar | Check details

Mukesh Ambani, chairman of Reliance Industries, is planning to build what could become the world’s largest data centre in Jamnagar, Gujarat, according to a report by Bloomberg. With an anticipated three gigawatt overall capacity, the plant would represent a significant advancement in India's technology sector, easily surpassing existing international standards by a significant amount. In contrast, today's biggest operating data centers, which are mostly in the US, are smaller than one gigawatt.

Reliance is purchasing cutting-edge AI chips from Nvidia Corporation to back up this bold initiative. The intricate calculations needed by AI-driven tools like ChatGPT and other generative AI platforms depend on these high-performance CPUs.

Mukesh Ambani's decision was not made at random. To meet the increasing demand for AI services, big companies such as Google, Amazon, and Microsoft have been investing billions of dollars on extending the capacity of their data centers. A group comprising Oracle, SoftBank, and OpenAI said earlier this week that they will spend up to $500 billion in AI infrastructure through a project named Stargate.

Ambani's Jamnagar project will surpass current data center capacity and provide India with a competitive edge in the expanding AI sector if this venture proceeds as planned. Similar to the USA, India's total data center capacity is currently less than one gigawatt. A significant accomplishment for the nation would be tripling this capability in a single initiative, which would hasten the development of AI.

The project's magnitude and anticipated cost are both unparalleled. Industry estimates put the cost of building such a large plant at $20 and $30 billion. It would be difficult to finance such a project even with Reliance Industries' about $26 billion in cash reserves. The business has not yet responded to the reports.

Ambani's approach seems to be comparable to his technique in the telecom industry, where Reliance Jio upended the market by providing services at competitive costs. This time, the goal is to reduce the cost of AI inferencing, which is the computing process that powers AI models. This process may be unaffordable for both new and established businesses.

Reliance's petrochemical and oil refining facilities are already located in Jamnagar, which will now be a key location for the company's efforts to advance AI and renewable energy. With Reliance constructing solar, wind, and green hydrogen projects close by, it is anticipated that the data center will be primarily powered by renewable energy. Experts note that fossil fuels or big battery storage devices could still be needed to guarantee a steady energy supply for such a large installation.