Meta and Reliance Industries strike AI data center deal to scale India's infrastructure backbone

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Meta Platforms has agreed to lease a 168-megawatt AI-enabled data center from Reliance Industries in Jamnagar, Gujarat, marking the company's first such facility in India. The deal deepens a partnership that began with Meta's $5.7 billion investment in Jio Platforms in 2020 and extends their collaboration into physical infrastructure for AI workloads.

Meta Reliance Partnership Expands into AI Infrastructure

Meta Platforms has secured its first India data-centre deal with Reliance Industries, agreeing to lease a 168-megawatt AI-enabled data center in Jamnagar, Gujarat

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. Reliance Industries will build and deliver the facility within two years, with options for Meta to scale capacity as demand grows

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. The deal marks a significant milestone in building India's AI infrastructure and represents the latest evolution in a partnership that dates back to 2020, when Meta invested $5.7 billion in Mukesh Ambani's Jio Platforms.

Source: DT

Source: DT

"This world-class facility in Jamnagar will help us scale our AI infrastructure globally while deepening our long-term investment in India's economy," said Mark Zuckerberg, founder and CEO of Meta

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. Mukesh Ambani, chairman of Reliance Industries, described the investment as a "transformative moment for India's digital infrastructure"

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Strategic Location Positions India as Global AI Hub

Jamnagar has emerged as a strategic location for this AI infrastructure expansion, where Reliance is developing one of the world's largest data center campuses

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. The site offers access to significant energy resources and sits near undersea cable landings and Jio's fiber network, providing the connectivity needed for high-density AI workloads

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. The facility has been designed specifically to handle next-generation AI services for one of Meta's largest and fastest-growing user bases.

Source: MediaNama

Source: MediaNama

Global hyperscalers have been lining up to invest in data centers in India, with $400 billion flowing into the country's AI ecosystem over the last year, the majority directed toward such facilities and necessary energy infrastructure

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. Global brokerage Nomura noted in a June 2 report that India's data center capacity is expected to rise to 7 GW by 2030 as it remains "cost-efficient" relative to other developed Asia Pacific and Western markets

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Renewable Energy and Sustainability at Core

The AI data center will run on renewable energy and use desalinated seawater for cooling, with Meta covering the full cost of the power and water

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. Meta is partnering with Indian clean energy providers CleanMax and Fourth Partner Energy for nearly 1GW of renewable energy—837MW from CleanMax and 88MW from Fourth Partner Energy

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. These projects, spread across northern and southern Indian states, will supply clean energy to Meta's growing infrastructure in the country, consistent with the company's global goal of matching all operations with 100% clean and renewable energy

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Joint Venture Brings Enterprise AI Solutions

Beyond the physical infrastructure, Meta and Reliance Industries have announced a joint venture to develop and deploy Llama-based enterprise AI solutions in India and select international markets, with an initial combined investment of approximately Rs 855 crore, around $100 million

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. Under the agreement, Reliance Industries will hold a 70% stake while Meta will hold the remaining 30%

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Source: ET

Source: ET

The joint venture will offer two core products: an enterprise AI Platform-as-a-Service that allows organizations to customize, deploy, and govern generative AI models for workflows across sales, IT, customer service, and finance; and a suite of pre-configured AI solutions for both cross-functional and sector-specific use cases

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. The partnership will leverage Meta's open-source Llama models and Reliance's reach to thousands of enterprises and small and medium businesses across India

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What This Means for India's Digital Ambitions

The investment signals how India's digital ambitions are increasingly moving from software and services to the foundational infrastructure powering the AI era

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. Earlier this year, the Indian government announced a 20-year tax exemption for hyperscalers that use data centers in the country to service global clients

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. This policy environment, combined with cost advantages and available power, positions India as an attractive alternative as US and European grids strain under AI load.

The deal also extends Meta's global AI infrastructure expansion beyond its massive US investments, including a $200 billion Louisiana campus and a $21 billion CoreWeave deal

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. Whether the facility can maintain its sustainability commitments as Meta scales operations remains a key question, particularly as India's grid and water systems face their own pressures

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. The transaction is subject to regulatory approvals and expected to close in the fourth quarter of 2025

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