In a move that signals the next phase of India’s digital infrastructure boom, Reliance Industries Ltd (RIL) is reportedly planning to invest a staggering ₹1.6 lakh crore (over $17 billion) to build a massive data centre cluster in Visakhapatnam. If executed as planned, this project could become India’s largest data centre hub, placing the country firmly on the global map for artificial intelligence (AI) and cloud infrastructure.
While the company has yet to make an official announcement, the scale, ambition, and timing of the project highlight Reliance’s aggressive push into the AI-driven digital economy.
Credits: Kotak Securities
A Giga-Scale AI Infrastructure Vision
At the heart of the proposal is a 1.5-gigawatt (GW) data centre cluster—an enormous capacity designed to power next-generation AI workloads, cloud services, and data storage. To put that into perspective, this would surpass the 1-GW facility being planned by Google in the same region.
Reliance’s plan isn’t just about size—it’s about building a future-ready ecosystem. The company aims to integrate captive solar power generation and battery storage systems, ensuring that the data centres operate with greater energy efficiency and sustainability. This aligns with global trends where hyperscale data centre operators are increasingly investing in renewable energy to manage soaring power demands.
Phased Development with Long-Term Timeline
The project is expected to be rolled out in three phases, allowing Reliance to scale operations in line with demand.
- Phase 1: A 500-MW data centre at Polipalli village, targeted to be operational by October 2028.
- Phase 2: Expansion of an additional 1 GW capacity at Bhogapuram East and West by 2030.
The company has reportedly requested around 935 acres of land for the cluster, along with additional land for a cable landing station and a desalination plant—critical infrastructure to support large-scale data operations.
Strategically, the cluster will be located near the upcoming Bhogapuram airport, enhancing connectivity and logistical efficiency.
Visakhapatnam: India’s Next Data Centre Hub
The choice of Visakhapatnam is no coincidence. The coastal city is rapidly emerging as a preferred destination for data centre investments due to its strategic location, access to subsea cable networks, and supportive state policies.
In fact, multiple global and domestic players are already lining up investments in the region:
- Google is planning a $15 billion, 1-GW data centre cluster.
- Sify Technologies is working on a 500-MW facility.
- Digital Connexion has proposed a 1-GW project.
- Anant Raj Cloud is developing around 300 MW capacity.
- Additional MoUs have reportedly been signed with RMZ Corp and Tillman Global Holdings.
This clustering effect could transform Visakhapatnam into a major digital gateway for India, similar to how cities like Singapore and Dublin evolved into global data centre hubs.
Strategic Implications for Reliance
For Reliance, this move fits into a broader strategy of dominating India’s digital ecosystem. With its strong presence in telecom through Jio, retail, and digital services, building large-scale AI data infrastructure could unlock new revenue streams in cloud computing, enterprise solutions, and AI services.
Moreover, owning data centre infrastructure gives Reliance a critical edge—it reduces dependence on third-party providers and strengthens its ability to offer integrated digital solutions across industries.
The addition of renewable energy also reflects the company’s parallel push into green energy, creating synergies between its digital and sustainability ambitions.
Credits: Yahoo Finance
The Bigger Picture: India’s AI and Data Boom
India is witnessing an explosion in data consumption, driven by rising internet penetration, AI adoption, and digital transformation across sectors. As companies increasingly rely on AI models and cloud computing, the demand for high-capacity, low-latency data centres is surging.
Projects like Reliance’s proposed cluster are not just infrastructure investments—they are foundational to India’s ambitions of becoming a global AI powerhouse.
If the plan materialises, it could mark a turning point, positioning India as a key hub for global data processing and AI innovation, while cementing Reliance’s role at the center of this transformation.
