How Reliance Industries can add $50B to its market value
What's the story
Reliance Industries Ltd, the oil-to-telecom-and-retail conglomerate led by billionaire Mukesh Ambani, is poised for a major leap in its market value. According to analysts at Morgan Stanley, the firm's investments in new energy and artificial intelligence (AI) infrastructure could add as much as $50 billion to its current valuation of over $240 billion. The firm's future growth will largely depend on scaling these diversified verticals.
Value creation
New energy vertical could create significant value for Reliance
Morgan Stanley's report highlights the potential of Reliance's new energy vertical to create value. The firm believes that Reliance could use its energy production capabilities to power chemicals, data centers, and refineries. This would be a major step forward for the company as it looks to monetize its energy production at the Jamnagar complex.
AI strategy
AI infrastructure being built at Jamnagar
Reliance is also building AI infrastructure at Jamnagar, which it hopes to complete in two years. The firm has announced plans to power 1GW of data center capacity with NVIDIA's Blackwell chips. In its third-quarter earnings call, Reliance unveiled a comprehensive national AI infrastructure strategy to capitalize on the growing trend of AI adoption.
Green initiatives
Generative AI data center in the works
Reliance's generative AI data center in Jamnagar will have an initial capacity of 1GW, requiring some 1.3GW of round-the-clock green power. This is expected to be drawn from the company's rapidly expanding renewable ecosystem. The conglomerate also has plans for lithium iron phosphate battery making and green hydrogen production on a 2,000-acre site in Gujarat.
Renewable goals
Reliance's solar power goals
Reliance aims to add 10GW of solar power capacity by the end of 2026. These efforts are part of its broader strategy to support its AI ambitions and make India an emerging data center hub.