Adani Enterprises and Jabil have signed a memorandum of understanding (MoU) to establish a joint venture (JV) that will manufacture and assemble artificial intelligence (AI) and data centre hardware in India. This new partnership aims to build a strong manufacturing ecosystem for AI and data centre infrastructure, supporting India's expanding digital economy.
- The JV will be a 50:50 partnership between Adani Enterprises and Jabil.
- It will manufacture AI racks, servers, storage, and networking equipment used in data centres.
- The venture will also produce power distribution units, liquid-cooling systems, and transformers.
- India's data centre capacity is expected to reach 5 to 8 gigawatts by 2030.
- The global market opportunity for AI computing infrastructure is estimated at over $3 trillion in the next seven years.
What is the purpose of the Adani-Jabil joint venture?
The joint venture aims to manufacture and assemble AI and data centre hardware in India. This includes AI racks that house high-performance computing systems, servers, storage devices, and networking equipment essential for data centres. Additionally, the JV will produce equipment to power and cool these systems, such as power distribution units and liquid-cooling solutions. The goal is to support the growing demand for AI infrastructure both domestically and globally.
How will this JV impact India's data centre industry?
India's data centre capacity is projected to grow significantly, reaching between 5 and 8 gigawatts by 2030. This growth is driven by increased AI adoption, cloud computing expansion, and data localisation policies. The JV will provide a local manufacturing base to meet domestic demand and enable exports. It will also contribute to India's goal of building a robust AI infrastructure, helping to reduce reliance on imports and strengthen the technology ecosystem.
What are the strategic benefits for Adani Group and Jabil?
For Adani Group, the JV complements its $100 billion commitment to develop 5 gigawatts of green-energy-powered, hyperscale AI-ready data centres by 2035. It adds hardware manufacturing capabilities to its existing strengths in energy, infrastructure, logistics, and data centres. For Jabil, which reported $36 billion in revenue in fiscal year 2026, the venture expands its engineering and manufacturing footprint in India's growing data centre market. Jabil also brings expertise from recent acquisitions focused on power and cooling solutions for high-performance computing.
What is the expected scale and capacity of the joint venture?
The JV is expected to have multi-gigawatt AI rack manufacturing capacity. It will support computing systems with a combined power capacity of several gigawatts. Besides manufacturing, the venture will provide installation and commissioning services for the hardware it produces. This scale positions the JV to serve both domestic customers and international markets.
What are the next steps for the joint venture?
The MoU sets the framework for the proposed JV, which remains subject to the execution of definitive agreements, receipt of necessary approvals, and satisfaction of customary conditions. Once finalized, the JV will begin operations to manufacture and assemble AI and data centre equipment in India, contributing to the country’s growing technology infrastructure.
Frequently Asked Questions
Q: What is the ownership structure of the joint venture?
A: The joint venture will be equally owned by Adani Enterprises and Jabil, with a 50:50 partnership.
Q: What types of equipment will the JV manufacture?
A: The JV will manufacture AI racks, servers, storage and networking equipment, power distribution units, liquid-cooling systems, and transformers used in data centres.
Q: How does this JV align with India's data centre growth?
A: It supports India's projected data centre capacity growth to 5–8 gigawatts by 2030 by providing a local manufacturing base for critical AI and data centre hardware.
Q: What is the significance of this partnership for Jabil?
A: The partnership expands Jabil's engineering and manufacturing presence in India’s data centre market and leverages its expertise in power and cooling solutions for high-performance computing.
Q: When was the initial strategic alliance between Adani Group and Jabil announced?
A: The strategic alliance was first announced in June 2026, prior to signing the MoU in October 2026.
