NEW DELHI: Adani Enterprises Ltd (AEL) and US-based Jabil Inc. have signed a non-binding memorandum of understanding (MoU) to set up a 50:50 joint venture to manufacture and assemble artificial intelligence (AI) and data centre equipment in India. The proposed venture will manufacture AI racks, servers, storage and networking equipment used in data centres. According to the companies' press release, it will also produce power distribution units, liquid-cooling systems and transformers required to run high-performance computing systems.
The joint venture is expected to have multi-gigawatt AI rack manufacturing capacity. It will also offer installation and commissioning services, according to the companies.
“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,” Gautam Adani, chairman of the Adani Group, said.
He said the proposed venture would help the group expand beyond powering and hosting AI infrastructure to manufacturing critical systems required for next-generation computing.
The MoU follows the June 2026 announcement by the Adani Group and Jabil to establish a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India. The proposed venture remains subject to definitive agreements, regulatory approvals and other customary conditions.
Jabil CEO Mike Dastoor said the partnership would combine the company's engineering and manufacturing expertise with Adani's infrastructure and energy capabilities to supply rack-level data centre solutions to large technology companies in India and overseas.
India's data centre capacity is projected to reach 5-8 gigawatts by 2030, driven by growing AI adoption, cloud computing and data localisation requirements. The companies estimate that the global market opportunity for AI infrastructure could exceed $3 trillion over the next seven years, supported by rising investments in AI computing. The proposed venture would create a manufacturing base in India to cater to domestic demand and exports, as companies worldwide expand their computing infrastructure.
The project also aligns with the Adani Group's commitment to invest $100 billion in developing 5 GW of green-energy-powered, hyperscale AI-ready data centres by 2035. For Adani, the venture would add hardware manufacturing to its existing presence in energy, infrastructure and data centres. For Jabil, it would expand its manufacturing capabilities in India's growing data centre market.
Jabil reported revenue of $36 billion in fiscal 2026. The company has also strengthened its data centre capabilities through acquisitions, including Hanley Energy Group, which provides critical power and energy management solutions, and Mikros Technologies, which specialises in liquid-cooling technologies.
The proposed joint venture marks a step towards building a domestic supply chain for the hardware and supporting systems needed to power the expanding AI ecosystem.