As technology firms compete to obtain the computational power essential for training and implementing AI systems, Meta is making its initial investment in AI infrastructure in India by partnering with conglomerate Reliance Industries in a market that is swiftly becoming a central hub for AI infrastructure.

The collaboration, unveiled on Wednesday, will involve Meta working with Reliance on a 168-megawatt AI-enabled data center located in Jamnagar, Gujarat, furthering a partnership that has progressed from Meta’s multibillion-dollar investment in Reliance’s Jio Platforms to a $100 million joint venture initiated last year to create enterprise AI solutions for clients in India and international markets.

This agreement comes as India solidifies its position as a prime destination for AI infrastructure investments, with technology giants exploring new regions for data centers amidst skyrocketing demand for computational power to train and deploy AI models. Companies such as Microsoft, Amazon, Google, OpenAI, and Uber have recently declared AI and cloud infrastructure investments in the nation, which has notably increased its data center presence in recent times.

The influx into India is not limited to international tech companies. Earlier this week, Blackstone-supported AirTrunk revealed intentions to invest $30 billion to construct 5 gigawatts of data center capacity in India by 2030, while Indian conglomerates like Adani and Tata Consultancy Services have also announced significant data center expansion initiatives aimed at accommodating AI workloads.

The government in New Delhi has aimed to draw such investments by implementing policy incentives, including tax exemptions through 2047 for foreign cloud providers on services sold internationally, as long as those services are operated from Indian data centers.

According to government data, India’s installed data center capacity has increased from approximately 375 megawatts in 2020 to around 1.5 gigawatts by 2025. Industry projections suggest that this figure could escalate to over 8 gigawatts by the decade’s close, fueled by cloud adoption, AI workloads, and increasing demand for local data processing.

The Meta-Reliance pact represents the latest development in a bond that has increasingly strengthened since Meta invested $5.7 billion in Jio Platforms in 2020. Since that time, the two firms have broadened their partnership in areas like digital services, enterprise AI, and now the infrastructure supporting cutting-edge AI systems.

As part of this collaboration, Meta is leasing capacity at Reliance’s new Jamnagar facility, which the companies have stated will operate on renewable energy and utilize desalinated seawater for cooling. Meta has pledged to bear the total cost of the energy and water necessary for its operations there.

Reliance indicated that the 168-megawatt facility will be operational within two years and has the potential for future expansion. Moreover, this data center will also fulfill Meta’s global infrastructure and AI computing needs, integrating India more directly into the company’s international network of AI facilities.

According to the agreement, Reliance stated it would offer end-to-end services ranging from design and construction to renewable energy, connectivity, and ongoing operations, indicating the conglomerate’s aspirations to establish itself as a comprehensive provider for AI infrastructure among global tech companies.

In addition, Meta disclosed that it has secured nearly 1 gigawatt of new renewable energy capacity in India through contracts with CleanMax and Fourth Partner Energy, which will enhance the renewable power supply for the Jamnagar facility.

The firms did not reveal the financial details of the agreement, the specific types of AI workloads that will be managed at the facility, or whether Meta intends to pursue further AI infrastructure investments in India.