HomeTechnologyMukesh Ambani plans to build the world's largest AI data center

Mukesh Ambani plans to build the world's largest AI data center


Reliance Industries chairman and tycoon Mukesh Ambani is planning to triple India's data center capacity. For this, he wants to build the world's largest data center in Jamnagar, Gujarat. The capacity of this center will be three gigawatts. This is shaping up to be a major step forward in India's technology sector, which will easily surpass the current global benchmarks by a large margin.

Currently, the world's largest operating data centers are located in the United States. And their capacity is basically below one gigawatt.

Reliance is procuring advanced AI semiconductors from Nvidia Corporation for this massive project. These high-powered chips are essential for AI-based tools, such as ChatGPT and other generative AI platforms.

Various technology giants including Microsoft, Amazon, Google are investing billions of dollars in data centers to meet the demand for AI services. Last week, a consortium including OpenAI, SoftBank and Oracle announced plans to invest up to $500 billion in AI infrastructure under the 'Stargate' project.

Ambani's data center will not only surpass existing data center capacity, but AI will create a significant competitive advantage for India. Now all the data center capacity in India is below one gigawatt. But tripling the capacity of this project will be a big success for India and will accelerate the development of AI technology.

The cost of this project will also be high. According to industry experts, building such a large data center may require an investment of around $20 to $30 billion. While Reliance Industries has around $26 billion in cash reserves, raising funds for the project could be challenging. However, the company has not yet commented on the matter.

Ambani's strategy is similar to the one he used in the telecom sector, where Reliance Jio revolutionized the market by offering cheap services. This time the company aims to reduce the cost of AI inference (the computational process behind running AI models), which can be prohibitively expensive for startups and established companies.

Reliance already has oil refining and petrochemical operations at Jamnagar. The new data center will be primarily powered by green energy. Next to this, solar energy, wind energy and green hydrogen projects will be developed. However, experts say, such a large facility may require fossil fuels or large battery storage systems to ensure uninterrupted power supply.

Ambani has clearly stated that his aim is to make AI accessible to all people in India. He said last year, 'We want to pay the lowest AI costs in the world, so that everyone can easily use AI.'

References: India Today



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