Meta and Reliance build 168 MW AI data center in Jamnagar, India

Meta is leasing a 168 MW AI data center from Reliance in Jamnagar, its first infrastructure bet in India's fast-growing digital economy.

Meta is leasing a 168 MW AI-enabled data center from Reliance Industries in Jamnagar, Gujarat, its first such facility in India and a bet on one of the world's fastest-growing digital markets.

"We're proud to be working with Reliance to build our first AI-enabled data center in India," Mark Zuckerberg, founder and CEO of Meta, said. "This world-class facility in Jamnagar will help us scale our AI infrastructure globally while deepening our long-term investment in India's economy."

The facility will be powered by renewable energy and cooled with desalinated seawater, with Meta covering the full cost of energy and water. Reliance will build the data center with an option to scale beyond the initial 168 MW, targeting 100 MW to 120 MW of operational capacity by 2026 as part of a broader blueprint for gigawatt-scale AI campuses across the country.

The deal extends a partnership that began with Meta's $5.7 billion investment in Jio Platforms in 2020 and later expanded into a joint venture bringing Meta's open-source Llama models to Indian enterprises. For Reliance, which has unveiled a $110 billion multi-year plan covering data centers and renewable energy, the agreement positions the conglomerate as a hyperscale AI infrastructure operator in Asia.

"This partnership with Meta marks a transformative moment for India's digital infrastructure," Mukesh D. Ambani, chairman and managing director of Reliance Industries, said. "Building India's first built-to-suit AI data centre for a global technology leader of Meta's scale demonstrates India's readiness to be at the forefront of the global AI revolution."

Meta has also contracted nearly 1 GW of new clean and renewable energy in India through agreements with two providers. CleanMax will supply 837 MW of new solar and wind projects in Rajasthan and Karnataka, bringing cumulative capacity with CleanMax to over 900 MW. Fourth Partner Energy will add 88 MW of new solar and wind projects across Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh.

The Jamnagar location gives Meta access to significant energy resources and desalinated seawater for cooling, a critical advantage as AI workloads generate intense heat. Reliance is developing one of the largest data center campuses in the world there, with ambitions to reach 1 GW of total AI data center capacity — a figure that would make it one of the largest AI infrastructure operators in Asia. The company has committed over $11 billion through joint ventures with partners including Brookfield and Digital Realty specifically targeting AI infrastructure buildouts.

The partnership structure, with Reliance holding roughly 70% ownership of the joint venture, gives Meta significant infrastructure access without bearing the full capital expenditure burden. The arrangement mirrors how Reliance approached petroleum refineries — treating scale as the entire competitive advantage. Google Cloud is also involved in Reliance's broader AI strategy, creating a multi-hyperscaler dynamic in India's digital transformation.

For Meta, localizing data operations in India helps navigate the country's evolving data sovereignty landscape. Indian regulators have pushed for sensitive data to be processed domestically, and having physical infrastructure in-country removes a potential regulatory obstacle. The data center will connect to Meta's broader network investments, including Project Waterworth, the world's longest subsea cable system.

Reliance shares ended 0.7% higher at ₹1,272 on Tuesday, snapping a nine-day losing streak, though the stock remains down 8.3% over the past month. Meta, which trades at roughly 24 times forward earnings, is investing aggressively to expand its capacity footprint to support its AI ambitions serving billions of users worldwide. The India data center represents a strategic hedge against concentration risk in its existing infrastructure footprint, which is heavily weighted toward the US and Europe.

This article is for informational purposes only and does not constitute investment advice.