Mukesh Ambani-led Reliance Industries Ltd (RIL) is reportedly developing the world’s largest data centre by capacity in Gujarat’s Jamnagar, according to a recent Bloomberg report. In October, the RIL chairman confirmed that the data centre is being developed in partnership with Nvidia to capitalise on the growing demand for artificial intelligence services.

“In Jamnagar, we are ready for a big scale-up in infrastructure. We are building infra for 1 gigawatt which is expandable to multiple gigawatts at one location. We already have green power. We are building this so that we can scale this and as your multiple technologies come, we will build our infrastructure,” Ambani had said during a fireside chat with Nvidia CEO Jensen Huang in October.

Huang had hosted Mukesh Ambani during his company’s first AI summit in India. Ambani had then emphasised the need for the conglomerate to “repeat a Jio” to make artificial intelligence affordable and accessible to all Indians.

At the summit, RIL had announced to establish gigawatt-scale AI data centres with Nvidia, fully powered by Reliance’s green energy initiatives. The group is reportedly procuring Nvidia’s advanced AI semiconductors. The data centre in Jamnagar is expected to have a capacity of three gigawatts, significantly surpassing any existing data centre that are reported to have capacities below 1 gigawatt. Nvidia last year had also supported Yotta Data Services in building its GPU computing infrastructure.

Reliance is developing a massive green energy complex in the same town and plans to power its new data centre largely with the renewable energy produced at the complex. However, reports suggest it may be difficult to rely entirely on green energy to run the facility.

Bloomberg reported that the estimated cost of financing this data centre based on regional benchmarks is somewhere between $20 billion and $30 billion. This also raises questions about its financing, which remains unclear.

In addition to Gujarat, Telangana is emerging as a hub for data centre investments, with companies like STT Data and AWS expanding their presence in the state.

This marks Ambani’s entry into the AI data centres business, a fiercely competitive space wheres tech giants like Microsoft, Alphabet, and Amazon have been investing billions to deliver AI capabilities globally.

Currently, almost all of the world’s largest data centres by capacity are in the U.S.

This week, OpenAI, SoftBank, and Oracle also announced plans to invest $100 billion to $500 billion in AI infrastructure in the U.S. through their Stargate Project. While the trio did not disclose the size of the data centres planned under the project, OpenAI CEO Sam Altman has suggested the possibility of building 5-gigawatt facilities.

Global demand for data centre capacity is projected to more than triple by 2030, reaching 219 gigawatts annually.