Masterstroke by Mukesh Ambani as Reliance plans to invest Rs 4170000000000 in…, Morgan Stanley says…
New Delhi: In a major step, Mukesh Ambani-led Reliance Industries is bracing for a massive leap, charting an ambitious course to unlock its next USD 50 billion in value creation from its current USD 240+ billion market cap. The company is reportedly betting on green energy and generative AI. According to a Morgan Stanley report, the Mukesh Ambani-led conglomerate could be entering its most transformational phase yet. 'We believe new energy and AI infrastructure will drive this next leg, funded by strong earnings from its existing energy business—which could outperform expectations. The consumer business also has solid valuation support,' the brokerage firm said.
Morgan Stanley said that at the heart of Reliance's pathway is the integration of its new energy business with AI infrastructure, particularly at its Jamnagar complex. The Gen AI infrastructure in Jamnagar is expected to be ready in two years.
It is important to note that RIL 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's green push and AI ambitions: A perfect combination
With an aim to capitalize the growing global demand for green energy and AI capabilities, the RIL is transforming energy hub to monetize its energy production through powering chemicals, data centers, and refineries.
To recall, Reliance in its Q3FY25 earnings call had announced that it plans to build a 1GW data center capacity powered by NVIDIA's Blackwell chips. According to estimates by Morgan Stanley, the 1GW facility alone would need approximately 678k B100 chips. If RIL were to use around 200MW for its own purposes, it would need about 135k B100 chips.
Further, the 1GW facility when scaled up, which normally needs 4-5 years from startup, would require approximately 1.3GW of round-the-clock power, which Reliance's new energy ecosystem is designed to supply. Reliance's new energy vertical
While clean energy and AI form the bedrock of future growth, Reliance's traditional businesses continue to provide the cash and scale to back this transformation.
Morgan Stanley has estimated that Reliance's New Energy division — covering solar, batteries, green hydrogen, and carbon capture — could create up to $60 billion in value, highlighting its potential as a major driver of future growth. The shift from fossil fuels to clean energy will allow Reliance to sustainably power its refineries, chemical plants, and digital infrastructure.
The company is spreading its renewable energy presence. It is important to note that the group's 10 GW solar manufacturing chain, targeted for 2026, along with its green hydrogen facility in Kandla, is expected to further reduce costs and enhance vertical integration.
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