Reliance, Nvidia collaborate to set up world's largest data centre in Jamnagar

25 Jan 2025

Reliance, Nvidia collaborate to set up world's largest data centre in Jamnagar
Image source: Freepik
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Reliance Industries Ltd (RIL) is reportedly setting up a 3 Giga Watt data centre, the world’s largest so far, in Jamnagar, Gujarat, marking its entry into the world of Artificial Intelligence. RIL has acquired AI semiconductors from Nvidia, which will also collaborate with RIL for setting up the necessary infrastructure, including advanced Blackwell AI processors. 

The company has reportedly procured AI semiconductors from Nvidia, a global leader in AI technology. This follows the October 2024 announcement at the Nvidia AI Summit, where Reliance and Nvidia revealed plans to collaborate on AI infrastructure. Nvidia committed to supplying its advanced Blackwell AI processors for a one-gigawatt data centre that Reliance proposed to establish.

RIL announced the deal with Nvidia in October 2024, during the Nvidia AI Summit. As per the original proposal, Nvideo was to provide infrastructure support for a 1 Giga Watt data centre. Nvidia CEO Jensen Huang had then said that India should be making its own AI. He also said India should not be exporting data for importing intelligence, which was like exporting flour and importing bread.

The move is also in line with an earlier statement made by RIL chairman Mukesh Ambani that data is the new oil. In fact, Ambani is banking on India’s strong digital connectivity infrastructure, which, he said, the country should put to best use. 

RIL and Nvidia had also collaborated to develop AI super computers and large language models (LLMs) specifically for India where there are nearly two dozen official languages and hundreds of dialects.

Nvidia also has a similar partnership with the Tata Group, reflecting its commitment to India’s AI-driven growth.

Private investments in AI are also boosted by government’s promise of support to AI projects, LLMs and startups as part of a long-term strategy. The government has also allocated Rs10,000 crore for providing financial support to AI ventures.

Once operational, the Jamnagar data centre will align RIL with tech biggies like Microsoft, Alphabet and Amazon, whose data centre have current capacities of less than one gigawatt. It will also triple India’s current data centre capacity, which is below one gigawatt.

Like in the telecom sector, Mukesh Ambani’s entry in the market for AI offerings is also expected to have a softening impact on prices, as he has promised to look for cost-effective solutions that make AI applications more affordable.

Besides providing a robust foundation for AI applications across various sectors, it will make AI applications more affordable and accessible, encouraging industries to switch to AI tools and applications.

Global demand for AI data centre is expected to grow three fold by 2030 as more and more businesses go for AI-driven technologies, reports citing a McKinsey study said. A mega data centre like the one RIL plans to build will significantly benefit India, the world’s most populous country.

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