For creators and builders, the new reality is that AI compute is moving south, not just up
The race to secure the raw horsepower required to train and deploy artificial intelligence is now shifting its sights firmly toward India. Meta has made its first major infrastructure wager in the region, locking in a partnership with Reliance Industries to build a dedicated data centre. This move signals that the country is rapidly becoming a primary hub for the physical backbone of AI development.
A strategic pivot from software to silicon
Announced on Wednesday, the collaboration involves constructing a 168-megawatt facility in Jamnagar, Gujarat. This project builds on a relationship that has transformed over time, evolving from Meta’s initial $5.7 billion investment in Reliance’s Jio Platforms in 2020. Last year, the two firms launched a $100 million joint venture to create enterprise AI solutions for the Indian market and beyond. Now, the focus has turned to the heavy lifting of physical infrastructure.
Global giants are following the same path
India is cementing its position as a preferred location for AI infrastructure. As demand for computing power soars, major players are looking beyond their home markets. Tech behemoths including Microsoft, Amazon, Google, OpenAI, and Uber have recently revealed plans to expand their cloud and AI capabilities within the country. This trend is not limited to Western firms; Blackstone-backed AirTrunk has pledged $30 billion to add 5 gigawatts of capacity by 2030, while local heavyweights Adani and Tata Consultancy Services have also unveiled significant expansion plans.
Policy incentives are driving the rush
The government in New Delhi is actively courting this capital through specific policy tools. Foreign cloud providers can receive tax exemptions on services sold overseas, provided those workloads are processed within Indian data centres. This regulatory framework aims to keep data local while allowing for global revenue streams.
The scale of the build-out
Government figures show India’s installed data centre capacity has surged from roughly 375 megawatts in 2020 to approximately 1.5 gigawatts in 2025. Industry analysts predict this number could multiply more than fivefold, reaching over 8 gigawatts by the end of the decade. This growth is driven by widespread cloud adoption, increasing AI workloads, and a rising need for local data processing.
What this means for the partnership
Under the new agreement, Meta will lease capacity at the Jamnagar site. The facility is designed to run on renewable energy and utilise desalinated seawater for cooling. Meta has committed to covering the full cost of the energy and water required for its operations there. Reliance states the site will be operational within two years and offers the flexibility to expand later. Crucially, this location will plug directly into Meta’s global network, supporting both its worldwide requirements and local AI computing needs.
Reliance views this as part of a broader strategy to become a one-stop shop for global tech firms, offering end-to-end services from design and construction to renewable power and connectivity. Separately, Meta has contracted nearly 1 gigawatt of new renewable energy in India via deals with CleanMax and Fourth Partner Energy to supplement the Jamnagar facility.
The companies have not disclosed the financial value of the deal, the specific types of AI workloads that will run from the site, or whether further investments in Indian infrastructure are planned.
Key takeaways
- Meta is deploying its first dedicated AI data centre in India, a 168-megawatt facility in Jamnagar built in partnership with Reliance Industries.
- India’s data centre capacity is projected to grow from 1.5 gigawatts today to over 8 gigawatts by 2030, driven by aggressive investment from both global and local players.
- The government is offering tax exemptions to foreign cloud providers to ensure AI workloads remain local while generating overseas revenue.
- Meta is covering the full cost of energy and water for the Jamnagar site, which will be powered by renewable sources and cooled using desalinated seawater.
