Meta has signed its inaugural data center agreement in India with Reliance.

      Meta has reached an agreement to lease a 168-megawatt, AI-capable data center in India from Mukesh Ambani’s Reliance Industries, marking its first such facility in the country. Reliance will develop the site in Jamnagar, Gujarat, and Meta will lease it with the potential to expand, as stated by the two companies on Tuesday.

      “This world-class facility in Jamnagar will enable us to scale our AI infrastructure globally while enhancing our long-term investment in India’s economy,” remarked Meta CEO Mark Zuckerberg. Meta positions the site as part of its initiative toward what it refers to as “personal superintelligence.”

      The data center will operate on renewable energy and utilize desalinated seawater for cooling, with Meta bearing the complete cost of the electricity and water. Jamnagar, where Reliance is establishing one of the largest data-center campuses in the world, is located near undersea cable landings and Jio’s fiber network. The 168MW represents an initial phase, with potential for further expansion.

      The deal strengthens a partnership that was initiated with Meta’s $5.7 billion investment in Reliance’s Jio Platforms in 2020, followed by a joint venture aimed at introducing Meta’s open-source AI models to Indian enterprises. This agreement comes amid a broader influx of investment: over $400 billion poured into India’s AI sector in the past year, primarily for data centers and the energy required to operate them.

      Meta operates extensive computing facilities in the US, including a $200 billion campus in Louisiana and a $21 billion agreement with CoreWeave, but India provides more affordable land, accessible power, and over a billion potential users. The attraction is partly driven by necessity: the power grids in the US and Europe are struggling under AI demands, with utilities planning to spend $1.4 trillion, while India’s capacity is rapidly increasing.

      To ensure a sustainable buildout, Meta has also secured nearly 1GW of renewable energy in India, including 837MW from CleanMax and 88MW from Fourth Partner Energy. However, it remains uncertain if this will be sufficient. The plan is to operate a 168MW facility, with the capacity for expansion, using renewables and desalinated water, but India’s power and water systems themselves are facing challenges. The key challenge ahead is whether Jamnagar can maintain its sustainability as Meta expands operations.