India’s Reliance Industries joint venture (JV) will invest a mammoth $11 billion to develop 1 gigawatt of AI data capacity in Andhra Pradesh. The five-year project stands tall as one of the country’s largest investments in technology, which could help transform the country into an AI hub in the coming years, consistent with its recent aspirations.
The mega project also includes partners such as Brookfield Corporation, a Canadian multinational company, and Digital Realty, a US-based real estate investment trust. This JV is called Digital Connexion.
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Reliance and Co.’s $11 billion AI investment in India
The investment will build an AI-native data center campus across 400 acres of land in Visakhapatnam city in Andhra Pradesh, India.
Similarly, Larsen & Toubro (L&T) has also pledged nearly $2.5 billion of funds for five data centers, with one in Visakhapatnam with a capacity of at least 300 megawatts.
With these recent announcements, the investment in India’s AI infrastructures has reached $26 billion by 2031. This would surpass the data center capacity of the whole country, which currently stands at around 1.4 GW (by S&P Global). By 2031, it could touch 2 GW.
Acceleration to pour money in India’s AI industry emanates from its huge market potential with over 1.5 billion population. Also, as Western companies seek a way beyond China, the South Asian country is emerging as an obvious hub for investment.