Reliance Stock Gains over 2% as Meta Join Hands to Build AI Data Centre

Shares of Reliance Industries (RIL) gained over 2% on Wednesday after the company announced a partnership with Meta Platforms to develop India's first AI-enabled data centre in Jamnagar, Gujarat. The stock climbed to ₹1,300 on the BSE, making RIL among the top index contributors on the day.

A report by Livemint highlights that the gains mark the second consecutive session of recovery for RIL shares following a nine-day losing streak that eroded nearly ₹1.29 lakh crore in investor wealth.

According to the NSE filing by Reliance Industries on 10 June, RIL will develop a 168-megawatt data centre facility in Jamnagar, with an option to scale the capacity further.

Meta will lease capacity from the facility to support its global AI infrastructure and computing recruitments. The project marks Meta's first built-to-suit data centre capacity in India.

Under the agreement, RIL will provide end-to-end services, including design, construction, utility management, renewable energy supply, network connectivity, and managed services. Effectively positioning RIL as a single-window solutions provider for hyperscale AI infrastructure in the country.

Jamnagar is preferred because of the strategic advantage the location possesses, including access to renewable energy, desalinated seawater for cooling, proximity to submarine cable landing stations on India's western coast and connectivity through Jio's fibre network.

What the Companies Said

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said in a statement that this partnership marks a transformative moment for India's digital infrastructure.

"Building India's first built-to-suit data centre for a global technology leader of Meta's scale demonstrates India's readiness to be at the forefront of the global AI revolution," he said, adding that Jamnagar will become a landmark destination for hyperscale AI computing, and we are proud to partner with Meta to make this vision a reality.

Meta CEO and Founder, Mark Zuckerberg, said in the statement that "We're proud to be working with Reliance to build our first AI-enabled data centre in India," adding that the facility will help Meta scale its AI infrastructure globally while deepening its long-term investment in India's economy.

The partnership marks the deepening of the existing relationship between the two companies. Meta has previously formed a joint venture, Reliance Enterprise Intelligence (REIL), with the conglomerate to help with its plans to expand its presence in artificial intelligence.

The venture will deploy Meta's open-source Llama models to develop AI applications for enterprises and small and medium-sized businesses, with a focus on sector-specific solutions across industries.