**Mukesh Ambani’s Big Announcement at Global Investor Meet**
Mukesh Ambani, the chairman and managing director of Reliance Industries Ltd, made a significant revelation at the Tamil Nadu Global Investors Meet in Chennai, announcing plans to establish a new data centre in collaboration with Canada’s Brookfield. This partnership is a strategic move that signifies Reliance’s foray into the rapidly expanding data centre market, positioning the company to capitalize on the escalating demand for data storage and compute capacity in India.
**Reliance Industries and Brookfield’s Joint Venture**
Last year, Reliance Industries infused about ₹378 crore to become a part of an existing joint venture with Brookfield Infrastructure and US-based realty estate investment trust Digital Realty. The three entities now collectively hold a 33% stake in the venture, solidifying their collaboration in the realm of data centers and related infrastructure.
**Strategic Investments and Market Entry**
During his address, Mukesh Ambani emphasized the group’s commitment to sustainable initiatives, including investments in renewable energy and green hydrogen. Furthermore, he underscored the imminent launch of a cutting-edge data centre in Chennai, underscoring the strategic significance of this entry into the burgeoning Indian data centre market.
**Competitive Landscape and Growth Projections**
The Indian data centre market is projected to experience a robust growth of 40% annually and attract investments totaling $5 billion by 2025. Reliance’s foray into this domain intensifies competition, pitting it against formidable players such as Gautam Adani’s Adani Group and Bharti Airtel Ltd., led by Sunil Mittal. The soaring requirements for data centre and compute capacity are driven by the increasing localization of personal data, heightened access to digital services, and the widespread adoption of data-intensive technologies like artificial intelligence.
**Expansion and Acquisition Initiatives**
The joint venture, facilitated by Reliance and Brookfield, is poised to inaugurate a 20-megawatt greenfield data centre in Chennai. Moreover, the venture has procured 2.15 acres of land in Mumbai earmarked for the construction of another 40-MW data centre, signaling an ambitious expansion and a steadfast commitment to meet the escalating demands of the market.
**Tamil Nadu’s Business-Friendly Environment**
Mukesh Ambani lauded Tamil Nadu’s progress under the leadership of Chief Minister M K Stalin, citing the state’s evolution into one of the most business-friendly destinations in the country. He expressed confidence in Tamil Nadu’s potential to emerge as a trillion-dollar economy, aligning with the apt slogan of the Global Investors Meet.
**Reliance’s Contributions to Tamil Nadu’s Economic Growth**
Highlighting Reliance’s significant contributions to the state’s economic landscape, Ambani mentioned the establishment of nearly 1,300 retail stores, amounting to a substantial investment exceeding ₹25,000 crore. The telecom arm of the group, Jio, has channeled investments exceeding ₹35,000 crore, extending the digital revolution’s reach to 35 million subscribers across every town and village in Tamil Nadu.
**Environmental Commitments and Collaborations**
In line with Reliance’s emphasis on sustainable development and environmental responsibility, Ambani reiterated the company’s commitment to investing in renewable energy and green hydrogen within Tamil Nadu. He expressed confidence in collaborating closely with the state government to promote initiatives that champion sustainable development, vital in combating the climate crisis.
Mukesh Ambani’s announcement at the Global Investors Meet signals a pivotal moment for Reliance Industries as it ventures into the burgeoning data centre market in India. With a strategic partnership with Brookfield and a strong commitment to sustainable growth, Reliance is poised to play a pivotal role in shaping India’s data infrastructure landscape, laying the groundwork for a digital future buoyed by innovation and environmental consciousness.