Reliance Industries, headed by billionaire Mukesh Ambani, has announced plans to open a state-of-the-art data centre in Chennai, India. The company has partnered with Canada’s Brookfield Asset Management and US-based Digital Realty to venture into the fast-growing data centre market. The data centre is expected to be operational from next week.
Reliance Industries entered into an existing joint venture last year with Brookfield Infrastructure and Digital Realty by investing approximately ₹378 crore. Each of the three partners owns a 33% stake in the venture. The Indian data centres market is projected to grow at a rate of 40% per year and attract $5 billion in investments by 2025. Reliance’s entry into this market places it in direct competition with Gautam Adani’s Adani Group and Sunil Mittal’s Bharti Airtel Ltd., who have also recently entered the data centre space.
The demand for data centres and compute capacity in India is set to surge due to the increasing localization of personal data, greater access to digital services, and the adoption of data-intensive technologies like artificial intelligence. Reliance and its partners will begin the first phase of their venture, a 20-megawatt greenfield data centre in Chennai, next week. Additionally, they have acquired 2.15 acres of land in Mumbai for the construction of another 40-MW data centre.
Mukesh Ambani praised the chief minister of Tamil Nadu, M K Stalin, for creating a business-friendly environment in the state. He expressed confidence that Tamil Nadu would soon become a trillion-dollar economy. Reliance has been invested in the state for years, having opened nearly 1,300 retail stores with investments totaling over ₹25,000 crore. Its telecom arm, Jio, has invested over ₹35,000 crore in Tamil Nadu, extending digital services to 35 million subscribers across towns and villages.
Ambani emphasized the importance of sustainable development and announced commitments to renewable energy and green hydrogen initiatives in Tamil Nadu. He expressed confidence in the state government’s support for their forthcoming projects. Reliance’s focus on renewable energy aligns with its aim to mitigate the climate crisis and support sustainable development.
The opening of the data centre marks a significant milestone for Reliance Industries as it expands its presence into the growing Indian data centre market. With the demand for data centres on the rise, the company is set to capitalize on the fast-paced digital transformation taking place in India. As Reliance continues to invest in the country’s infrastructure and digital services, its influence in the market is likely to grow, bringing innovative technologies and economic growth to the Indian economy.
