India races ahead in AI as Mukesh Ambani plans world's largest data center

The global race for artificial intelligence (AI) supremacy is intensifying, with India emerging as a major player. Billionaire Mukesh Ambani, chairman of Reliance Industries, has announced plans to build the world’s largest AI data center in Gujarat’s Jamnagar.

The facility, which will have a massive 3-gigawatt (GW) capacity, aims to power India's AI ambitions while reducing dependence on foreign AI infrastructure. Ambani's project surpasses even the largest U.S. data centers, including Microsoft's 600-megawatt (MW) facility in Virginia.

Reliance’s AI initiative follows its partnership with NVIDIA in September 2024 to develop AI supercomputers and large language models. This move aligns with India’s broader push to become a global AI hub.

India’s AI expansion

India is aggressively investing in artificial intelligence. The Indian government has pledged $12 billion to support AI startups and large language model development.

According to The Economic Times, India is the second-largest developer community on GitHub, after the U.S., and could overtake America by 2028. Global tech firms—including Microsoft, Amazon, AMD, and NVIDIA—are making significant investments in the country.

Microsoft has announced a $3 billion expansion of its Azure AI capacity in India, focusing on Bengaluru, the nation’s leading tech hub.

Meanwhile, Hyderabad is becoming a startup hotspot due to its AI-friendly initiatives. Chennai, Ahmedabad, and Jaipur are also witnessing AI-driven investments across sectors, from fintech to manufacturing.

Reliance and NVIDIA’s AI mega project

Ambani's AI data center in Jamnagar is part of a joint venture with NVIDIA, which will supply advanced semiconductor technology. The facility is designed to operate largely on renewable energy, with Reliance building a 5,000-acre green energy complex to power the data center.

According to Bloomberg, the project is expected to cost between $20 billion and $30 billion and will be completed within 24 months. If successful, it will mark a turning point in India's AI capabilities.

AI models such as ChatGPT, MidJourney, and AlphaFold require enormous computing power, measured in gigawatts. The 3 GW capacity of Ambani’s center dwarfs India’s current data infrastructure and could transform the country into an AI powerhouse.

“This project will make India self-sufficient in AI and attract global tech firms to its ecosystem,” said Akash Ambani, Reliance’s director.

Global AI arms race

India is not alone in the AI race. Canada recently announced the Wonder Valley AI Industrial Park in Alberta, aiming for 7.5 GW capacity over the next decade.

Meta CEO Mark Zuckerberg has pledged $65 billion for AI infrastructure, including a 2 GW data center. Meanwhile, President Donald Trump has launched "Stargate," a $500 billion AI initiative in partnership with OpenAI, SoftBank, and Oracle.

Microsoft and Amazon are also expanding their AI investments, with commitments of $80 billion and $75 billion, respectively.

China’s AI dominance and India’s opportunity

China, already a leader in AI chips and data centers, has heavily invested in AI manufacturing. Meanwhile, a McKinsey & Co. report predicts global data center electricity demand will triple to 219 GW by 2030, with the U.S. facing a 15 GW shortfall.

This presents an opportunity for India. With its cost-effective labor force and growing AI infrastructure, the country could emerge as a key player in the AI revolution.

With Ambani’s AI data center set to reshape the industry, India is positioning itself as a global AI leader. However, challenges remain, including infrastructure development and regulatory hurdles.