Adani, Jabil Plan 50:50 AI Data Centre Hardware JV in India

NEW DELHI/ST. PETERSBURG :  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) setting out the framework for a proposed 50:50 joint venture to manufacture and assemble artificial intelligence (AI) and data centre equipment in India.

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

The MoU follows the June 2026 announcement of Adani Group and Jabil’s intent to establish a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India.

Mr. 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 centres to help build the physical backbone of the global AI economy.”

Mr. 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 centre solutions to more hyperscalers in India and around the world. We look forward to building on the work we started together in June.”

Manufacturing AI Hardware in India

The joint venture would manufacture and assemble AI racks, servers, storage and networking equipment used in data centres. The racks would house high-performance computing systems for AI applications and other digital services.

The portfolio would also include equipment required to power and cool these systems, including power distribution units, liquid-cooling systems and transformers.

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.

India’s Data Centre Opportunity

India’s data centre capacity is projected to reach 5–8 gigawatts (GW) by 2030, driven by AI adoption, cloud expansion and data localization.

The venture would provide a manufacturing base in India to serve domestic demand and support exports. The companies estimate the global market opportunity at more than $3 trillion over the next seven years, driven by investment in AI computing.

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 centres until 2047, is expected to support investment in domestic data infrastructure.

The venture is aligned with Adani Group’s $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centres by 2035. The proposed venture would add hardware manufacturing to the Group’s presence across infrastructure, energy, logistics and data centres.

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. The company has also expanded its data centre capabilities through the acquisition of Hanley Energy Group, which provides critical power and energy management solutions, and Mikros Technologies, which specializes.