** Morgan Stanley expects Reliance RELI.NS AI/data center business to deliver returns above 12% (ROCE) or about twice the returns from its telecom and consumer investments over the past decade

** Adds that RELI's $110 billion AI investment target over seven years is as large as its earlier consumer business spending

** On Wednesday, Meta META.O said it will lease an AI-ready data centre to be built by Mukesh Ambani's company

** Shares trade flat on Thursday

** Meta is already a major investor in IPO-bound Jio Platforms, and formed a JV last year with RELI to develop AI tools for enterprises using its Llama models

**Twenty-nine analysts have a "buy" rating on avg on RELI; median PT is 1,695 rupees - data compiled by LSEG

** YTD, RELI down ~20%