Reliance and Google Cloud to build AI-first cloud region in Jamnagar powered by green energy

In a strategic leap for India’s AI ambitions, Reliance Industries Limited (NSE: RELIANCE) has announced an expansion of its long-standing partnership with Google Cloud to build a state-of-the-art AI-focused cloud region in Jamnagar, Gujarat. The announcement, made on August 29, 2025, marks a critical inflection point in the journey to build indigenous AI infrastructure that is both scalable and sustainable.

Reliance Industries will take charge of designing, building, and powering this cloud facility, while Google Cloud will provide the compute firepower—bringing its latest generation of generative AI models, AI-powered applications, and fully integrated AI stacks to the Indian market. The dedicated cloud region is expected to support not only Reliance’s own digital transformation across retail, energy, and telecom businesses but also power AI-driven growth for startups, small businesses, developers, and public sector entities across India.

In terms of digital infrastructure, Reliance Jio will ensure robust intra- and inter-city fiber optic connectivity between Jamnagar and key metros including Mumbai and Delhi. This infrastructure backbone is intended to guarantee the low-latency, high-throughput performance required for mission-critical AI workloads.

How will this AI-first cloud region serve India’s businesses, startups, and public sector?

Reliance’s collaboration with Google Cloud is geared toward building AI capabilities at national scale. The Jamnagar cloud region will be fully compliant with Google Cloud’s global specifications and SLAs, allowing it to handle complex and high-throughput AI use cases across sectors. Institutional sentiment suggests this will be a game-changer for India’s cloud market, which is growing at a double-digit pace but has so far lacked hyperscale infrastructure tailored to AI compute needs.

The Indian conglomerate stated that the facility will help accelerate its own AI-driven transformation journey. Reliance’s sprawling operations—spanning petrochemicals, retail, digital media, and energy—are already being modernized with AI models for supply chain optimization, customer engagement, and predictive maintenance. Now, with in-house AI infrastructure powered by green energy, Reliance can experiment, iterate, and deploy AI solutions at hyperscale with lower latency and greater control.

Beyond Reliance, the new cloud region is expected to democratize access to AI for startups, small and medium businesses, educational institutions, and government organizations. Developers will gain access to Google Cloud’s AI platform and APIs within Indian jurisdiction, helping alleviate concerns around data sovereignty, latency, and regulatory compliance.

What are Mukesh Ambani and Sundar Pichai saying about this next phase of the AI partnership?

Reliance Industries Chairman and Managing Director Mukesh D. Ambani emphasized that this partnership is India’s next step toward global AI leadership. According to him, just as Jio and Google previously collaborated to make internet access affordable for millions, the current partnership aims to “democratize intelligence for every Indian.” The convergence of Google’s cutting-edge AI stack with Reliance’s green energy and telecom infrastructure is, he said, the foundation for India’s future digital sovereignty.

Sundar Pichai, CEO of Google and Alphabet, highlighted that the partnership reflects Google’s long-term investment in India’s digital future. He referred to the past decade of collaboration with Reliance—especially through Jio—and expressed optimism that the new initiative will catalyze India’s leap into AI-driven growth.

Notably, Pichai framed this cloud region not as a culmination, but as a beginning, implying further joint initiatives that could follow in sectors like public services, education, and smart cities.

What makes Jamnagar a strategic location for Google Cloud and Reliance’s AI operations?

Jamnagar may not be India’s most obvious tech corridor, but its selection is rooted in strategy. Already home to Reliance’s massive refinery and energy infrastructure, Jamnagar provides the energy backbone and security needed to support a hyperscale cloud facility. With Reliance’s renewable energy push—including solar and green hydrogen—there is a clear path to powering this AI-first data center with minimal carbon footprint.

In terms of connectivity, Reliance Jio’s optical fiber networks provide the necessary bandwidth and redundancy to make Jamnagar a reliable regional AI hub. The inclusion of inter-metro links ensures that the facility can serve latency-sensitive applications across the country’s major economic centers. From an economic development standpoint, the investment in Jamnagar aligns with India’s goal of distributing digital infrastructure beyond its Tier-1 cities.

How does this project position Reliance within the global and Indian AI ecosystem?

With this move, Reliance is signaling its intent to move from AI user to AI enabler. By building foundational infrastructure and localizing Google Cloud’s AI stack, the Indian conglomerate positions itself as a neutral platform for India’s AI growth—similar to what AWS or Microsoft Azure offers globally, but with deeper domestic integration.

This shift dovetails with Reliance’s ambitions to dominate sectors such as retail, telecom, and media through data and AI. In addition to deploying AI for its own business transformation, Reliance is effectively laying the tracks for India’s broader digital economy—much like it did with Jio and mobile data.

Globally, hyperscalers are seeking regional partners to distribute AI workloads. For Google Cloud, this partnership offers a strong foothold in a fast-growing AI market that is projected to be worth $17 billion in India by 2027, according to industry estimates. Reliance brings not just infrastructure but regulatory comfort, political capital, and market access—all crucial factors in a tightly regulated data environment.

What is the current financial and institutional performance of Reliance Industries?

For the fiscal year ending March 31, 2025, Reliance Industries Limited reported consolidated revenue of ₹10,71,174 crore (approximately US$125.3 billion), with a net profit of ₹81,309 crore (US$9.5 billion). The conglomerate also posted cash profits of ₹1,46,917 crore (US$17.2 billion), reflecting strong operating leverage across its energy, retail, and digital platforms.

On the global front, Reliance ranked 88th in the 2025 Fortune Global 500 list and 49th in the Forbes Global 2000 rankings, making it the highest-ranked Indian firm in both. The company was also included in Time Magazine’s list of the 100 Most Influential Companies of 2024—its second time on the list, underscoring its growing global footprint.

Institutional investors remain broadly optimistic about the stock, citing consistent cash flows from its core energy operations and optionality from its expanding retail and digital ecosystem. Analysts expect the AI infrastructure investment to further improve margins by reducing long-term cloud and AI-related opex, while potentially opening new monetization streams.

What’s next for Google Cloud and Reliance in their AI partnership?

Looking ahead, industry observers expect this dedicated cloud region to serve as a launchpad for more targeted AI initiatives—ranging from healthcare AI platforms to agricultural intelligence systems. Google Cloud’s existing products such as Vertex AI, Gemini, and Duet AI are likely to be integrated into Indian use cases via Reliance’s enterprise reach.

There is also speculation that this partnership could pave the way for joint SaaS offerings, localized LLM deployment, and regulatory-aligned AI observability tools—a key area as India moves toward framing its own AI governance policy.

By blending infrastructure, compliance, and innovation, Reliance and Google Cloud are not just building a data center—they are attempting to define the contours of India’s AI-powered future.