January 24, 2025
Indian billionaire plans to build world's most powerful AI data center - Bloomberg thumbnail
Economy

Indian billionaire plans to build world’s most powerful AI data center – Bloomberg

Indian billionaire plans to build world’s most powerful AI data center – BloombergMukesh Ambani’s Reliance Group is planning to set up a 3 gigabyte data center in Jamnagar. The project worth up to $30 billion
could become the world’s largest data center for AI.
”, — write: unn.ua

Billionaire Mukesh Ambani’s Reliance Group is building what could become the world’s largest data center by capacity in India, the latest in a series of global investments aimed at capitalizing on the growing demand for AI, Bloomberg reports, UNN writes.

Details

The 67-year-old billionaire is buying powerful artificial intelligence semiconductors from Nvidia Corp. and setting up a data center in Jamnagar that is expected to have a total capacity of three gigabytes, according to people familiar with the situation. This will be much larger than any of the data centers currently in operation.

Ambani joins a growing cohort of tech companies, including Microsoft Corp., Alphabet Inc. and Amazon.com Inc. that are investing billions of dollars in data centers to deliver AI capabilities to customers around the world. This week, OpenAI, SoftBank Group Corp. and Oracle Corp. pledged to invest between $100 billion and $500 billion in AI infrastructure in the United States through a new organization called the Stargate Project.

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A Reliance spokesperson declined to comment, pointing to a recent speech by the CEO of Reliance Jio Infocomm Ltd. Akash Ambani, son of Mukesh. The executive said that the conglomerate is building a data center that should be completed within two years. “We want to complete it Jamnagar-style in record time – as we have always done in Jamnagar – in 24 months,” he said.

The Ambani project, if implemented as planned, stands out for its sheer size. According to data provided by market intelligence company DC Byte, the largest data centers currently in operation have a capacity of less than 1 gigawatt, so the plans are several times larger than what is available on the market.

Data center capacity is often measured in megawatts of electricity that can be supplied to servers, cooling systems, and other equipment. The larger this number is, the greater the volume of computing operations that can be supported. And AI models are known to require a lot of computing power.

It is unclear how Ambani will pay for the project, which could cost between $20 billion and $30 billion, based on spending in the region for such facilities. Reliance Industries Ltd., the group’s main listed company, has the equivalent of about $26 billion on its balance sheet.

The Jamnagar facility will significantly increase India’s data center capacity, which is currently estimated at less than 1 gigawatt. Tripling this capacity will give the densely populated country the potential to significantly accelerate the development of artificial intelligence.

The city is becoming increasingly important to the conglomerate’s plans, which include a shift to renewable energy sources. Reliance said it is building a giant green energy complex covering an area of more than 2000 hectares, with plants for the production of photovoltaic panels, fuel cell systems, green hydrogen, energy storage and wind turbines.

Reliance is looking to power the new data center with as much renewable energy as possible, the people said. It will be adjacent to ongoing Reliance Group projects that will generate solar, wind and green hydrogen energy, according to one of the people.

However, it is noted that it is virtually impossible to provide a continuous and reliable flow of solar and wind energy without more permanent resources such as nuclear reactors, fossil fuel power plants, or extremely large battery systems to support it. 

Addendum

The world’s largest data centers in terms of capacity are currently located in the United States and are owned by tech giants. According to DC Byte, Microsoft’s facility in Boydton, Virginia, is the largest with a capacity of nearly 600 megawatts, with another 112 megawatts under construction. It is followed by Google and Meta Platforms Inc.

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