India's largest private-sector company has announced plans to invest up to $15 billion building artificial intelligence infrastructure in Jamnagar, Gujarat, as it positions itself to compete with global technology giants in the rapidly growing AI services market.

Reliance Industries Limited (RIL) intends to construct a one-gigawatt data centre network that investment bank Morgan Stanley estimates could value the conglomerate's AI division at $30 billion within three years.

Construction has commenced on gigawatt-scale facilities powered by renewable energy. The company plans to utilise approximately 25% of capacity for its own operations whilst offering the remainder as data-centre-as-a-service to international cloud computing providers.

To advance these ambitions, Reliance has established a new joint venture called Reliance Enterprise Intelligence Limited in partnership with Meta Platforms. The American social media company will hold a 30% stake following an initial commitment of 8.55 billion rupees (£80 million). The collaboration focuses on developing enterprise AI services for large organisations across India and internationally.

The alliance provides Reliance access to Meta's AI expertise and global partnerships, whilst Meta gains significant presence in India's expanding AI and enterprise cloud sectors.

Beyond Meta, Reliance is collaborating with Google Cloud to launch an AI-focused cloud region in India and working with Microsoft Azure on infrastructure optimisation for AI workloads. The company intends dedicating 100 megawatts of generative AI data centre capacity to enterprise inference requirements through these partnerships.

Reliance's AI strategy follows a dual approach—developing enterprise AI services whilst simultaneously integrating renewable energy infrastructure. The data centres will connect to broader plans installing 100 gigawatts of solar capacity, ensuring AI operations remain environmentally sustainable and cost-efficient.

Morgan Stanley projects Reliance's AI business could generate $1.5-1.6 million in annual revenue per megawatt, yielding an 11% return on initial investment. With its extensive ecosystem spanning telecommunications, retail and energy sectors, Reliance is positioning itself to both compete and collaborate with established global technology leaders.

The announcement represents Mukesh Ambani's latest diversification move, building on the billionaire's transformation of Reliance from primarily an oil refining and petrochemicals business into a conglomerate spanning digital services, retail operations and renewable energy.

India's AI infrastructure investment arrives as the country seeks to establish itself as a technology hub capable of supporting domestic demand whilst attracting international clients. The nation's combination of technical talent, growing digital economy and government support for technology development makes it an increasingly attractive location for data centre operations.

Reliance's renewable energy integration addresses growing concerns about AI's environmental impact, as massive data centres consume substantial electricity. By powering facilities with solar energy, the company aims to differentiate itself from competitors whilst reducing long-term operational costs.

The scale of investment—potentially reaching $15 billion—underscores both the capital intensity of modern AI infrastructure and Reliance's confidence in returns from the sector. Whether the company can successfully compete against established cloud providers including Amazon Web Services, Microsoft Azure and Google Cloud remains to be seen.

Reliance's existing telecommunications network through Jio, retail presence, and energy operations provide potential advantages in serving Indian enterprise clients seeking locally-based AI services with familiar providers. The company's financial resources also enable patient investment in building capabilities that may take years to reach full commercial potential.

The Jamnagar location in Gujarat state—already home to Reliance's massive oil refining complex—offers existing infrastructure and political support from the state government, potentially accelerating construction timelines.

Morgan Stanley's $30 billion valuation estimate for the AI division by 2027 assumes successful execution of construction plans, customer acquisition, and operational efficiency targets—outcomes that depend on numerous technical, commercial and regulatory factors.