The power equation nobody is talking about
At the heart of Reliance’s AI strategy is something deceptively simple: cheap electricity. According to Deven Choksey of DRChoksey FinServ, roughly 60–70% of any AI data centre investment goes not into chips or servers, but into power and cooling infrastructure. Reliance is addressing this head-on by building what is set to become one of India’s largest solar farms — a dedicated power source designed to slash operating costs to near zero once fully live.
Talking to ET Now, Choksey says heaper power means cheaper computing and cheaper computing, at scale, means the “complete democratisation of AI” — making advanced AI services accessible far beyond premium enterprise clients.
The revenue story by 2030
If Reliance hits its target of 1 gigawatt of data centre capacity by 2030, Choksey estimates that alone could generate upwards of $1.5 billion in annual revenue, with EBITDA margins in the 40–50% range. On top of that, Reliance is expected to reserve 25–30% of that capacity for its own internal compute — powering whatever emerges from the Jio Brain platform and its growing suite of AI-native services.
Should investors worry about the debt?
The concern is understandable on paper. But context matters. Reliance is currently running at an EBITDA rate of over ₹2 lakh crore annually, growing at 15–20% year-on-year. Jio’s platform alone contributes roughly ₹60,000 crore in annualised EBITDA, with capex requirements expected to stay contained between ₹35,000–40,000 crore. At that growth trajectory, the group could effectively double its profit base over five years — just as the new AI infrastructure begins generating its own returns.
Choksey’s view is pointed: “If they do not make this investment, the sustainability and survival of the group itself would come into question in the new era.”
The shareholder reward cycle
Reliance has a well-documented history of rewarding shareholders at the end of major investment cycles, and this time may be no different. Jio’s platform demerger is expected within months, with the retail business potentially following a year later. Renewable energy monetisation could round out a three-part value unlock over the next four to five years — giving long-term investors multiple catalysts to watch.For India’s broader AI ambitions, Reliance’s infrastructure push could prove to be the backbone the ecosystem has been waiting for. The question isn’t whether this investment is large — it clearly is. The question is whether the country, and the conglomerate, are ready to build at this scale. By all indications, Reliance is betting they are.