Shares of Reliance Industries gained in Tuesday’s session, rising 0.97% to ₹1,379, as the stock remained in focus amid reports of a massive investment in India’s data infrastructure space.
The Mukesh Ambani-led conglomerate is reportedly planning to invest ₹1.6 lakh crore (over $17 billion) to build a 1.5-gigawatt data centre cluster along with a captive solar and battery storage system in Visakhapatnam, Andhra Pradesh. The project is expected to become India’s largest data centre cluster, surpassing Google’s 1-GW project in the same region.
According to reports, the Andhra Pradesh Investment Promotion Committee has already approved the proposal. Reliance plans to develop the giga-scale artificial intelligence data centre cluster in three phases near Bhogapuram, close to the upcoming airport.
In the first phase, the company aims to set up a 500 MW data centre at Polipalli village, with commercial operations expected by October 2028. The second phase will add 1 GW capacity by 2030, taking the total to 1.5 GW. The company has also sought land for related infrastructure, including a cable landing station and a desalination plant.
Reliance has proposed an investment of ₹1.08 lakh crore in the data centre business and ₹51,300 crore in renewable energy, including a large solar project with a peak capacity of 9,000 MW DC.
The development aligns with Andhra Pradesh’s push to become a data centre hub, supported by incentives under its Data Centre Policy 4.0.
Despite some weakness in its traditional businesses, brokerages remain constructive on the stock. CLSA has maintained an ‘outperform’ rating with a target price of ₹1,800, citing strength in new-age segments such as FMCG, media, and new energy. Meanwhile, Nomura has a ‘buy’ rating with a target price of ₹1,680, highlighting the potential upside from the proposed Jio IPO.
In its latest quarterly performance, the company saw pressure in its oil-to-chemicals (O2C) and exploration segments, partly due to global supply disruptions linked to geopolitical tensions. However, its diversified business model continues to support long-term growth expectations.
Reliance Industries also announced a final dividend of ₹6 per equity share for FY26, with the record date to be declared, subject to shareholder approval at the upcoming AGM.