Mukesh Ambani-led Reliance Industries is bracing for a massive leap, charting an ambitious course to unlock the next USD 50 billion in value creation from its current market capitalization of USD 240 billion or more. The company is reportedly betting on green energy and generative AI. According to a Morgan Stanley report, the Mukesh Ambani-led conglomerate may be entering its most transformative phase yet. "We believe that new energy and AI infrastructure will drive this next leg, supported by strong earnings from its existing energy business, which may exceed expectations. The consumer business also has strong valuation support," the brokerage firm stated.
Key Highlights
- Reliance commits ₹4.17 lakh crore toward green energy and generative AI, aiming transformative tech integration.
- Jamnagar to host AI‑ready data centers powered by green energy, aligned with national AI infrastructure vision.
According to Morgan Stanley, integrating Reliance's new energy business with AI infrastructure, particularly at its Jamnagar complex, is central to the company's strategy. The Gen AI infrastructure in Jamnagar is expected to be completed in two years.
It is worth noting that RIL envisions its New Energy business as "more ambitious, far more transformational, and far more global in scope than anything it has ever done before."
Reliance's Green Push and AI Ambitions
With the goal of capitalizing on the growing global demand for green energy and AI capabilities, RIL is transforming into an energy hub to monetize energy production by powering chemicals, data centers, and refineries. To recall, in its Q3FY25 earnings call, Reliance announced plans to build a 1GW data center capacity powered by NVIDIA's Blackwell chips.
Morgan Stanley estimates that the 1GW facility alone will require approximately 678k B100 chips. If RIL used 200MW for its own purposes, it would require approximately 135k B100 chips.
Furthermore, when the 1GW facility is scaled up, which typically takes 4-5 years from startup, it will require approximately 1.3GW of continuous power, which Reliance's new energy ecosystem is designed to provide.
Also Read: Mukesh Ambani's Reliance Finalizes $2.9 Bn Loan in Landmark Global Banking Deal
Reliance's New Energy Vertical
While clean energy and AI are the foundations of future growth, Reliance's traditional businesses continue to provide the cash and scale required to support this transformation.
Morgan Stanley estimates that Reliance's New Energy division, which includes solar, batteries, green hydrogen, and carbon capture, could generate up to $60 billion in value, highlighting its potential as a significant driver of future growth. Reliance will be able to power its refineries, chemical plants, and digital infrastructure more sustainably as it transitions from fossil fuels to clean energy.
The company is expanding its renewable energy presence. It is worth noting that the group's 10 GW solar manufacturing chain, planned for 2026, as well as its green hydrogen facility in Kandla, are expected to further reduce costs and improve vertical integration.
