New Delhi: Adani Enterprises Limited (AEL), the flagship company of the Adani Group, and Jabil Inc. (NYSE: JBL), a global engineering, supply chain and manufacturing company, have signed a non-binding Memorandum of Understanding (MoU) to establish a proposed 50:50 joint venture focused on manufacturing and assembling artificial intelligence (AI) and data center hardware in India.
The proposed joint venture between Jabil and Adani aims to build a multi-gigawatt AI infrastructure platform in India covering AI racks, servers, networking equipment, power systems and cooling systems.
The data center hardware venture is expected to serve India’s growing data center demand while also supporting exports to global markets.
The proposed joint venture remains subject to the execution of definitive agreements, applicable approvals and customary conditions.
The MoU follows the June 2026 announcement by Adani Group and Jabil of their intent to establish a strategic alliance to develop an AI and data center infrastructure manufacturing ecosystem in India.
Adani-Jabil Data Center Hardware Joint Venture
The proposed 50:50 joint venture would manufacture and assemble data center hardware, including AI racks, servers, storage and networking equipment used in data centers.
The racks would house high-performance computing systems designed for AI applications and other digital services.
The proposed portfolio would also cover equipment required to power and cool these computing systems.
This includes power distribution units, liquid-cooling systems and transformers, expanding the scope of the planned data center hardware manufacturing platform.
The venture is expected to have multi-gigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts. It would also provide installation and commissioning services.
Once established, the joint venture would serve leading players across the AI ecosystem, including hyperscalers, neoclouds, data center operators and enterprises.
The companies intend to develop infrastructure that is made in India for India and global markets.
Gautam Adani on AI Infrastructure Manufacturing
Gautam Adani, Chairman, Adani Group, said: “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.”
“At Adani, our vision is to expand up 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.”
“Our proposed joint venture with Jabil marks a strategic step towards this future, combining Jabil’s world-class engineering and manufacturing capabilities with Adani’s integrated strengths in energy, infrastructure and data centers to help build the physical backbone of the global AI economy.”
The proposed data center hardware partnership will combine Jabil’s engineering and manufacturing capabilities with Adani Group’s strengths in energy, infrastructure and data centers.
Mike Dastoor, Chief Executive Officer (CEO), Jabil Inc., said: “The signing of this MoU is the next step forward in our shared efforts to establish a scaled AI infrastructure manufacturing platform in India, a market we believe will become increasingly important for both domestic and global AI infrastructure demand.
Integrating Jabil’s 60 years of engineering and manufacturing expertise with Adani’s significant infrastructure and energy capabilities, we can bring our rack-level data center solutions to more hyperscalers in India and around the world. We look forward to building on the work we started together in June.”
The proposed platform would strengthen India’s manufacturing capabilities for data center hardware, while enabling Jabil and Adani to cater to both domestic and international AI infrastructure requirements.
India’s Data Center Hardware Manufacturing Opportunity
India’s data center capacity is projected to reach 5–8 gigawatts (GW) by 2030, driven by AI adoption, cloud expansion and data localization.
The projected growth is expected to create demand for data center hardware across computing, networking, power and cooling infrastructure.
The proposed Adani-Jabil venture would establish a manufacturing base in India to serve domestic demand and support exports.
The companies estimate that the global market opportunity could exceed $3 trillion over the next seven years, driven by continued investment in AI computing infrastructure.
Industry forecasts project India’s data center capacity at 5–8 GW by 2030, while more than $50 billion in planned hyperscaler spending is expected across data center, cloud and AI ecosystems.
The companies estimate the global opportunity for AI infrastructure at more than $3 trillion over the next seven years as investment in AI compute infrastructure continues to increase.
AI Racks, Servers, Networking, Power and Cooling
The planned data center hardware portfolio will cover multiple components required for AI and data center infrastructure. These include AI racks, servers, storage systems and networking equipment.
The joint venture will also manufacture equipment needed to power and cool high-performance computing systems. Its planned portfolio includes power distribution units, liquid-cooling systems and transformers.
The AI racks manufactured by the venture would house high-performance computing systems used for AI applications and other digital services.
The proposed multi-gigawatt manufacturing capacity is expected to support computing systems with a combined power capacity of several gigawatts.
In addition to data center hardware manufacturing and assembly, the proposed venture would offer installation and commissioning services.
Data Localization and Domestic Infrastructure
The Digital Personal Data Protection Act, 2023, provides a framework for personal data protection. This legal safeguard, complemented by the Union Budget 2026 tax holiday for data centers until 2047, is expected to support investment in domestic data infrastructure.
The proposed data center hardware manufacturing venture is aligned with the broader development of India’s domestic data infrastructure and the expansion of AI and cloud ecosystems.
The venture would provide infrastructure for domestic requirements while also creating a manufacturing base to support exports to global markets.
Adani Group’s AI Data Center Plans
The proposed venture is aligned with Adani Group’s $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035.
The data center hardware joint venture would add hardware manufacturing to the Adani Group’s existing presence across infrastructure, energy, logistics and data centers.
The partnership with Jabil would therefore extend the Group’s participation in the AI infrastructure value chain into the engineering, manufacturing and assembly of critical systems used by data centers.
Jabil Expands Data Center Capabilities
For Jabil, which reported $36 billion in revenue in fiscal year 2026, the proposed venture would expand its engineering and manufacturing footprint in India’s data center market.
Jabil has also expanded its data center capabilities through the acquisition of Hanley Energy Group, which provides critical power and energy management solutions, and Mikros Technologies, which specializes in liquid-cooling solutions for high-performance computing systems.
These capabilities complement the planned data center hardware portfolio of the proposed Adani-Jabil joint venture, covering areas such as power management and liquid cooling for high-performance computing infrastructure.
The proposed partnership brings together Jabil’s 60 years of engineering and manufacturing expertise with Adani’s capabilities in energy, infrastructure and data centers to develop a scaled AI infrastructure manufacturing platform in India.
The companies intend for the proposed venture to support the growing requirements of hyperscalers, neoclouds, data center operators and enterprises, while developing data center hardware in India for both domestic and global markets.
Also Read: Renewable Energy Powered AI Data Centres: Adani Group Commits $100 Billion Investment by 2035
