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Adani, Jabil partner to build AI data centre equipment manufacturing ecosystem in India

According to the companies, the initiative targets a global market opportunity worth more than USD 3 trillion over the next seven years, driven by increasing investments in artificial intelligence infrastructure.

ENS Economic Bureau

NEW DELHI: Adani Group and Jabil Inc on Monday announced their intent to form a strategic alliance to establish a vertically integrated AI and data centre infrastructure manufacturing platform in India.

The proposed partnership will combine Jabil's six decades of engineering and manufacturing expertise with Adani Group's infrastructure network, green energy portfolio, logistics capabilities and growing data centre business. The companies aim to cater to the rising demand for AI-ready data centre hardware in India and global markets.

Under the alliance, the platform plans to set up multi-gigawatt high-density AI rack manufacturing capacity in India. It will manufacture and integrate next-generation liquid-cooled AI racks, servers, storage and networking systems for hyperscalers, co-location facilities and enterprise data centres.

The partnership will also cover the manufacturing of critical data centre equipment such as Power Distribution Units (PDUs), Coolant Distribution Units (CDUs), transformers, switchgears, busbars and advanced thermal management systems. Together, the companies aim to offer an end-to-end hardware ecosystem, from design and manufacturing to deployment.

According to the companies, the initiative targets a global market opportunity worth more than USD 3 trillion over the next seven years, driven by increasing investments in artificial intelligence infrastructure. The two firms are currently working on operational frameworks and formal agreements to accelerate implementation of the project.

The announcement comes at a time when India's data centre market is witnessing rapid growth. Industry estimates suggest that the country's data centre capacity could reach 5-8 GW by 2030, driven by rising AI adoption, cloud computing demand and data localisation requirements.

Global hyperscalers are expected to invest more than $50 billion in India's data centre, cloud and AI ecosystem over the coming years. In addition, data sovereignty requirements and provisions under the Digital Personal Data Protection Act are increasing demand for locally manufactured technology infrastructure.

The companies said the Union Budget 2026's tax holiday for data centres until 2047 is expected to further strengthen India's competitiveness as a global manufacturing and export hub for digital infrastructure.

The alliance also complements Adani Group's previously announced commitment to invest USD 100 billion in developing 5 GW of green-energy-powered, AI-ready hyperscale data centres by 2035.

Jabil, which reported revenue of USD 29.8 billion in FY2025, is among the leading global manufacturers serving the AI data centre industry. The company has also expanded its capabilities through investments in power management and thermal solutions businesses.

"The world is entering an Intelligence Revolution more profound than any previous Industrial Revolution. Nations that master the symmetry between energy and compute will shape the next decade. India is uniquely positioned to lead. Our alliance with Jabil represents a decisive step in building India's complete AI infrastructure stack — from green power generation to world-class hardware manufacturing. Together, we will ensure India is not merely a consumer in the AI age, but a creator, builder, and exporter of intelligence” said Gautam Adani, chairman of Adani Group.

Mike Dastoor, CEO of Jabil, said the partnership would help create long-term value across the AI ecosystem by offering scalable solutions throughout the product lifecycle.

“By combining Jabil's more than sixty years of engineering expertise and advanced manufacturing capabilities with Adani's formidable infrastructure and energy platform, we can expect to execute down to the rack level for hyperscalers and enterprises here in India and across the globe. As India becomes one of the world’s fastest-growing AI markets, the country’s skilled workforce and supportive business environment make it an attractive destination for this collaboration,” he added.

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