New energy, AI infra to drive USD 50 bn market value rise for Reliance

Reliance Industries Ltd's investments in new energy and artificial intelligence (AI) infrastructure are set to drive a projected USD 50 billion increase in the firm's market value, according to Morgan Stanley analysts.

The oil-to-telecom-and-retail conglomerate, helmed by billionaire Mukesh Ambani, is gearing up for its next phase of value creation.

Currently valued at over USD 240 billion, Reliance's future growth hinges heavily on scaling its diversified verticals, particularly in new energy and AI.

Gen AI is the next frontier for Reliance as it retools the Jamnagar energy complex to monetise its energy production -- a key hurdle globally for Gen AI ramp.

''We see potential for up to USD 60 billion in value creation from the new energy vertical as Reliance uses the electrons to power chemicals, data centres, and refineries,'' Morgan Stanley said in a report.

Reliance, it said, sees its New Energy business being ''more ambitious, far more transformational, and far more global in scope than anything it's ever done before..

Reliance is building Gen AI infrastructure in Jamnagar that it plans to be ready in two years as well. It has also announced plans to power 1GW of data centre capacity that will use NVIDIA's Blackwell chips.

In the 3QF25 earnings call, Reliance provided more details on its strategy, with plans to position itself to benefit from AI adoption trends by establishing a comprehensive national AI infrastructure.

The firm Generative AI data centre in Jamnagar, slated for completion within two years, will initially feature 1GW of data centre capacity, demanding around 1.3GW of round-the-clock green power, expected to be sourced from Reliance's rapidly expanding renewable ecosystem.

Reliance's green energy plans include lithium iron phosphate battery manufacturing and green hydrogen production, centred on a 2,000-acre site in Gujarat. The company aims to integrate 10GW of solar capacity by the end of 2026, supporting its AI ambitions and positioning India as an emerging data centre hub.

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