As tech firms compete intensely to lock down computing resources for training and running AI systems, Meta is placing its initial infrastructure wager in India through a data center alliance with Reliance Industries. The move targets a market quickly becoming a focal point for AI buildouts.

Announced on Wednesday, the collaboration involves Meta and Reliance developing a 168-megawatt AI-ready data center in Jamnagar, Gujarat. It builds on prior ties that began with Meta's large-scale funding of Reliance's Jio Platforms and continued with a $100 million joint venture last year focused on enterprise AI tools for Indian and international clients.

The agreement arrives as India solidifies its role as a prime location for AI infrastructure, with major players pursuing fresh sites amid surging demand for processing capacity. Microsoft, Amazon, Google, OpenAI, and Uber have all disclosed recent AI and cloud projects in the country, which has grown its data center base substantially in recent years.

Local and international investors alike are accelerating activity. Blackstone-backed AirTrunk revealed plans this week to commit $30 billion toward 5 gigawatts of capacity by 2030, while Indian groups such as Adani and Tata Consultancy Services have outlined their own large-scale expansions to handle AI demands.

New Delhi is encouraging these inflows via incentives like tax relief through 2047 for foreign cloud operators on overseas sales, provided the work runs from Indian facilities.

National data center capacity has climbed from roughly 375 megawatts in 2020 to about 1.5 gigawatts in 2025, per official figures. Projections indicate more than fivefold growth to beyond 8 gigawatts by decade's end, fueled by cloud uptake, AI tasks, and needs for localized processing.

The Meta-Reliance pact extends a partnership that began with Meta's $5.7 billion stake in Jio Platforms in 2020 and has broadened into digital services, enterprise AI, and now core infrastructure for advanced AI systems.

Under the deal, Meta will lease space at the new Jamnagar site, which will run on renewable power and use desalinated seawater for cooling. Meta will fund all energy and water costs tied to its operations.

Reliance indicated the 168-megawatt installation will be operational within two years and offers room for later growth. It will also serve Meta's broader global infrastructure and AI needs, integrating India more closely into the company's worldwide AI network.

Reliance will deliver full-stack services covering design, construction, renewable energy, connectivity, and operations, underscoring its goal to act as an integrated provider for global tech clients seeking AI infrastructure.

Separately, Meta secured nearly 1 gigawatt of additional renewable energy in India via pacts with CleanMax and Fourth Partner Energy to complement power for the Jamnagar site.

The companies withheld details on the deal's financial terms, the specific AI workloads involved, or any further Indian infrastructure plans.