Adani and Jabil Form Joint Venture to Manufacture AI and Data Centre Equipment in India

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Adani Enterprises and Jabil signed a Memorandum of Understanding for a 50:50 joint venture to manufacture AI and data centre equipment in India. The venture will produce AI racks, servers, storage systems, and cooling infrastructure with multi-gigawatt manufacturing capacity, targeting both domestic demand and exports in a market estimated at over $3 trillion.

Adani Jabil Joint Venture Targets AI Hardware Manufacturing in India

Adani Enterprises and US-based Jabil Inc. signed a non-binding Memorandum of Understanding on Tuesday to establish a 50:50 joint venture focused on manufacturing and assembling AI and data centre equipment in India

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. The proposed venture remains subject to execution of definitive agreements, receipt of applicable approvals, and satisfaction of customary conditions

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. This partnership builds on the June 2026 announcement when both companies first outlined their intent to develop an AI infrastructure manufacturing ecosystem in India

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Multi-Gigawatt Manufacturing Capacity for AI Racks and Servers

The joint venture will manufacture and assemble AI racks, servers, storage systems, and networking equipment used in data centres

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. These AI racks will house high-performance computing systems for AI applications and other digital services

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. The venture is expected to have multi-gigawatt manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts

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. Beyond servers and computing racks, the portfolio will include equipment required to power and cool these systems, such as power distribution units, liquid-cooling systems, and transformers

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. The venture will also provide installation and commissioning services to support its customers

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Targeting Domestic Demand and Exports in $3 Trillion Market

The companies estimate the global market opportunity at more than $3 trillion over the next seven years, driven by investment in AI computing

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. The venture would provide a manufacturing base in India to serve domestic demand and support exports

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. India's data centre capacity is projected to reach 5-8 gigawatts by 2030, driven by AI adoption, cloud expansion, and data localization

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. The Digital Personal Data Protection Act, 2023, provides a framework for personal data protection, while the Union Budget 2026 tax holiday for data centers until 2047 is expected to support investment in domestic data infrastructure

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Strategic Alliance Combines Manufacturing Expertise with Infrastructure Capabilities

Gautam Adani, Chairman of Adani Group, emphasized that "the AI revolution will demand far more than just breakthroughs in algorithms. It will require an entire new industrial architecture where energy, hyperscale infrastructure, advanced computing and precision manufacturing converge to power the intelligence economy"

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. The Adani Group's vision is to expand the AI value chain, evolving from powering and hosting AI infrastructure to engineering and manufacturing the critical systems that will define the next generation of computing

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. Mike Dastoor, CEO of Jabil Inc., stated that India will become increasingly important for both domestic and global AI infrastructure demand, and the company can bring its rack-level data centre solutions to more hyperscalers in India and around the world

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. For Jabil, which reported $36 billion in revenue in fiscal year 2026, the venture would expand its engineering and manufacturing footprint in India's data centre market

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. The venture aligns with Adani Group's $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035, adding AI hardware manufacturing to the Group's presence across infrastructure, energy, logistics, and data centers

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