Reliance Industries, led by Mukesh Ambani, is reportedly planning to build the world’s largest data centre in Jamnagar, Gujarat. According to a Bloomberg News report, this initiative marks a major step in Reliance's efforts to establish a strong presence in India’s artificial intelligence (AI) sector.
India has been making moves to boost its AI capabilities, with the government pledging over Rs 10,000 crore to support startups, AI projects, and the development of large language models (LLMs). However, despite these investments, challenges remain—particularly in the semiconductor sector. India’s domestic chip manufacturing industry is still in its early stages, and setting up fabrication facilities is a complex and costly affair that demands a highly skilled workforce.Nvidia's similar plan
Reliance, on the other hand, seems to be pushing ahead. The company has reportedly procured AI semiconductors from Nvidia, a global leader in AI technology. This move aligns with the partnership announced in October 2024 at the Nvidia AI Summit, where both companies revealed plans to collaborate on AI infrastructure. Nvidia is expected to provide its advanced Blackwell AI processors for a one-gigawatt data centre Reliance is planning to develop.
Speaking at the summit, Nvidia’s CEO, Jensen Huang, emphasised India’s potential in AI, suggesting that the country should focus on building its own AI capabilities rather than relying on external sources. "It makes complete sense that India should manufacture its own AI. You should not export data to import intelligence. India should not export flour to import bread," Huang stated.
Mukesh Ambani echoed similar sentiments, pointing to India’s robust digital connectivity. He highlighted that India has the potential to harness AI for widespread prosperity and create a more equitable world. According to Ambani, apart from the US and China, India boasts one of the strongest digital infrastructures globally.
Reliance’s partnership with Nvidia is not a new development. Back in September 2024, the two companies joined forces to develop AI supercomputers and LLMs tailored to India's linguistic diversity. Nvidia has also entered a similar agreement with the Tata Group, reinforcing its commitment to supporting India’s AI ambitions.
Despite these efforts, experts point out that India's journey to becoming a global AI hub is not without hurdles. The lack of a mature semiconductor industry could pose many challenges in the long run, as AI development heavily relies on advanced chip technology. Establishing domestic production facilities is a time-consuming and capital-intensive process, requiring skilled talent that India is still in the process of cultivating.