According to a report by Morgan Stanley, Reliance is likely to spend US $12-15 billion over the next several years on artificial intelligence (AI) infrastructure.
- The investment will include building a 1 gigawatt (GW) AI-ready data centre, and deploying chips and infrastructure to support training and inference of large language models (LLMs) and enterprise AI services.
- As part of the strategy, Reliance has created a wholly-owned subsidiary, Reliance Intelligence, to carry its AI ambitions, and entered into a joint venture with Meta Platforms via another entity Reliance Enterprise Intelligence Ltd (REIL) to build enterprise AI services.
Why This Investment Matters
A strategic pivot to deep tech
Reliance, traditionally known for refining, petrochemicals, telecom (through Reliance Jio) and retail, is marking AI as its next frontier. The company views AI infrastructure as a high-capex, high-synergy business that ties into its digital, energy and consumer ecosystems. The Economic Times
Data centres + chips + AI services
The planned 1 GW data centre is a large-scale build: Morgan Stanley estimates that Reliance will underwrite about 25% of the capacity itself, roughly US $7 billion for the infrastructure and US $5 billion for deploying ~250 MW of chips directly.
The rest of the capacity could be leased out (Data Centre as a Service) to hyperscalers and LLM providers.
Leveraging partnerships
Reliance is partnering with global tech players: the Meta JV focuses on enterprise AI services built on open-source models (Meta’s Llama), and collaboration with Google LLC and others is being cited for cloud and AI infrastructure.
Tying to energy and renewables
An interesting angle: AI data centres are energy-intensive. Reliance plans to deploy them alongside its large renewable energy, battery storage and solar capabilities — turning its energy business into a captive ecosystem for its AI infrastructure.
What to Watch / Risks
- Execution risk: Building 1 GW of AI-ready data centre capacity and chip deployment is complex and capital-intensive; timelines, supply chain (chips, cooling, power) matter.
- Competitive landscape: Other global players and hyperscalers are also investing heavily in AI infrastructure; whether Reliance can capture market share is key.
- Regulatory & data-governance issues: With AI infrastructure in India, data localisation, sovereignty, and regulatory oversight will be important.
- Return on investment (ROCE): Morgan Stanley estimates ~11% ROCE on the initial investments. Business Standard
- Synergy unlocking: The value will depend on how well the AI infrastructure ties into Reliance’s broader businesses (retail, telecom, energy).
Implications
- For Indian tech: This is a big vote of confidence in India as a site for AI infrastructure, high-capex deep tech and data-centre builds.
- For investors: Reliance’s narrative shifts – from oil/telecom/retail to a major technology/AI player. This could affect valuations and perception.
- For ecosystem: The move may stimulate AI-services growth, chip supply chains, data-centre build-up, and talent creation in India.
- For Reliance itself: A successful pivot could change its long-term growth trajectory, diversify revenue sources and reduce dependence on traditional businesses.
Summary
The reported US $12-15 billion investment by Reliance into AI infrastructure marks a significant strategic evolution for the company. With a 1 GW data-centre plan, chip deployment, service partnerships (Meta, Google) and a new AI subsidiary, the company is positioning itself to become a major player in deep tech. While the ambition is large and the execution will be key, the move underscores how AI is becoming a core frontier for Indian and global business leaders.
