Meta will lease a 168-MW AI data centre in Jamnagar from Reliance, the latest in a wave of hyperscaler investments as India's operational capacity reaches 1.6 GW.
Meta Platforms struck a deal with Reliance Industries to build its first AI-focused data centre in India, a 168-megawatt facility in Jamnagar that Meta will lease with an option to expand. Meta will cover the full cost of energy and water for the site. Reliance is developing one of the world's largest data centre campuses in the same area, giving it access to the power and cooling infrastructure that hyperscale AI workloads demand.
The agreement extends a partnership that began with Meta's $5.7 billion investment in Reliance's Jio Platforms in 2020. Last year the two companies formed a joint venture – Reliance holds 70%, Meta 30% – to build AI tools for Indian enterprises. The data centre lease moves the relationship from software to physical infrastructure.
India is drawing a wave of hyperscaler capital as global tech firms race to secure compute capacity outside their home markets. Microsoft will bring one of its largest Asia-Pacific data centres online in Hyderabad next quarter. Airtrunk, a Blackstone-backed firm, committed $30 billion to build 5 gigawatts of capacity in India by 2030. Cushman & Wakefield's Global Data Center Market Comparison 2026 report ranked India second in Asia-Pacific by operational capacity at 1.6 GW and third by development pipeline with 3.1 GW under construction or planned.
The Jamnagar site anchors the economics. Reliance controls the land and energy supply in a Gujarat industrial zone that already houses its refinery and petrochemical complex. Meta gets a built-to-suit facility in a market where electricity costs and renewable energy access are improving. For Reliance, the lease represents a new revenue stream from its digital infrastructure arm without taking on the risk of operating the data centre itself.
Investors brushed off the announcement on Wednesday. Meta shares fell 2.33% to $570.98, an Alpha Score of 57/100 (Moderate). Microsoft, which reported a similar datacentre buildout last quarter, dropped 1.50% to $397.36, Alpha Score 58/100. The reaction suggests the market sees the deal as incremental for both companies' already-large capex plans.
Mark Zuckerberg, Meta's chief executive, said the facility "will help us scale our AI infrastructure globally while deepening our long-term investment in India's economy." Reliance chairman Mukesh Ambani called the deal "a transformative moment for India's digital infrastructure."
The next test for India's data centre buildout is Microsoft's Hyderabad facility going live in the coming quarters. If that ramp proceeds without major delays in power or construction, more hyperscaler commitments are likely to follow.
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