Meta deepens India AI push with Reliance data center deal

Meta has agreed to lease a 168-megawatt AI data center in India from Reliance Industries. The facility will rise in Jamnagar, and Reliance will deliver it within two years.

The deal adds new AI infrastructure for Meta while extending its partnership with Mukesh Ambani’s group.

Meta expands AI capacity in Jamnagar

According to Meta’s release, Reliance Industries will build the AI-enabled data center for the US technology company. The facility will carry 168 megawatts of capacity and include an option to scale. Reliance operates businesses across petrochemicals, textiles, media, telecom, and digital services. Its new agreement with Meta adds data centers to a long-running technology partnership between both companies.

The two companies already have deep business links in India. In 2020, Meta invested $5.7 billion in Jio Platforms, Reliance’s telecom and digital services unit. Last year, Meta and Reliance expanded their work through a joint venture. The partnership made Meta’s open-source AI models available to Indian enterprises and developers.

India draws data center capital

Global hyperscalers have increased data center spending in India as AI infrastructure demand grows. The country has attracted $400 billion into its AI ecosystem over the last year. Most of that money has gone toward data centers and energy systems, according to the provided industry figures. Large AI systems need high-capacity sites and steady power supply.

Nomura said in a June 2 report that India’s data center industry ranks among the fastest-growing globally. The brokerage also said India remains cost-efficient compared with developed Asia Pacific and Western markets. India’s data center capacity could rise to 7 gigawatts by 2030, according to Nomura. The report linked that growth to cost advantages and rising hyperscaler demand.

The Indian government also introduced a 20-year tax exemption earlier this year. The policy covers hyperscalers using Indian data centers to serve clients outside the country. The tax rule adds another incentive for companies building AI infrastructure in India. Meta’s Reliance deal comes during that expansion of policy and private-sector investment.

Renewable energy deals support Meta operations

Meta is also working with Indian clean energy firms CleanMax and Fourth Partner Energy. The company said those partnerships cover nearly 1 gigawatt of renewable energy. The projects will operate across northern and southern Indian states. They will supply clean power to Meta’s expanding infrastructure footprint in the country.

Meta said the India energy investments align with its global clean power target. The Facebook parent wants to match all operations with 100% clean and renewable energy. The Jamnagar data center agreement adds to Meta’s existing India commitments. 

The deal links AI infrastructure, renewable power, and Reliance’s industrial base in one project. Reliance will deliver the data center within two years, according to Meta’s release. The facility also includes an option to scale after the first phase.