Meta Platforms and Indian conglomerate Reliance Industries have announced a major partnership to build a new AI-enabled data center in India.
This isn't just any building; it's a massive, cutting-edge facility in Jamnagar designed specifically for artificial intelligence. Meta will lease the first phase, which has a capacity of 168 megawatts, and has options to expand further. Crucially, to power this energy-hungry operation, Meta is also securing nearly 1 gigawatt of new renewable energy in India. This 'capacity plus compliance' strategy means they are adding computing power where their users are, while also following local rules and securing their own clean power source.
So, what’s driving this big move? It boils down to three key factors.
First is Meta’s enormous investment in AI. The company has raised its 2026 capital expenditure (capex) forecast to between $125 and $145 billion, with a major focus on AI infrastructure. Building a data center in India, one of its largest user markets, helps reduce data latency, making its services faster for local users. It also diversifies its global infrastructure, reducing risks.
Second, it's about playing by India's rules. India's Digital Personal Data Protection (DPDP) rules create strong incentives for companies to process and store Indians' personal data within the country. By building a local data center, Meta can more easily comply with these regulations. This also aligns with the Indian government's 'IndiaAI Mission,' which aims to build up the country's own AI capabilities.
Third is the critical issue of energy. AI data centers consume vast amounts of electricity. India's power grid has been under immense strain, recently hitting record demand during heatwaves. This creates a risk of power outages and delays for large projects. To get around this, Meta is proactively securing its own green power through PPAs, ensuring a stable and sustainable energy supply for its facility.
This partnership is a perfect match. Meta brings the AI technology and the massive capital, while Reliance provides the local expertise, infrastructure, and market access through its massive telecom arm, Jio. Their pre-existing joint venture, REIL, makes the execution of this project much smoother. Ultimately, this deal is a blueprint for the future of AI infrastructure: built close to users, compliant with local laws, and powered by dedicated green energy.
- Capex (Capital Expenditure): Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
- PPA (Power Purchase Agreement): A long-term contract between an electricity generator and a customer, usually a company, to purchase electricity at a pre-agreed price.
- Data Latency: The delay in data transfer from one point to another. In this context, it's the time it takes for data to travel between a user and a data center; lower latency means a faster user experience.