Adani Enterprises, Jabil sign MoU for 50:50 data centre hardware joint venture
ADVERTISEMENT
Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, and US-based engineering and manufacturing firm Jabil Inc. have signed a non-binding memorandum of understanding (MoU) to establish a 50:50 joint venture to manufacture and assemble artificial intelligence (AI) and data centre equipment in India.
The proposed venture is subject to definitive agreements, applicable regulatory approvals, and customary closing conditions. The MoU builds on the companies’ June 2026 announcement of plans to create a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India.
“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.
Adani said the group aims to expand its presence across the AI value chain, moving beyond powering and hosting AI infrastructure to engineering and manufacturing critical computing systems.
“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,” he added.
JV to manufacture AI racks, servers and cooling systems
The proposed joint venture will manufacture and assemble AI racks, servers, storage systems and networking equipment for data centres. Its product portfolio will also include supporting infrastructure such as power distribution units, liquid-cooling systems and transformers.
The venture is expected to develop multi-gigawatt manufacturing capacity for AI racks, supporting computing infrastructure with a combined power capacity of several gigawatts. It will also provide installation and commissioning services.
“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,” Mike Dastoor, chief executive officer of Jabil, said.
Combining Jabil’s six decades of engineering and manufacturing expertise with Adani’s infrastructure and energy capabilities would enable the companies to supply rack-level data centre solutions to hyperscalers in India and international markets, Dastoor added.
India’s data centre capacity to expand
India’s data centre capacity is projected to reach 5-8 gigawatts (GW) by 2030, driven by rising AI adoption, cloud computing demand and data localisation requirements. The proposed venture aims to establish a domestic manufacturing base to cater to Indian demand and support exports.
The companies estimate that the global market opportunity exceeds $3 trillion over the next seven years, fuelled by investments in AI computing infrastructure.
The proposed venture 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. The hardware manufacturing business would expand the group’s presence across the AI value chain, complementing its existing interests in energy, infrastructure, logistics and data centres.
India’s data infrastructure investment outlook is also being shaped by the Digital Personal Data Protection Act, 2023, and policy support for data centres. The Union Budget 2026 announced a tax holiday for data centres until 2047.
For Jabil, which reported revenue of $36 billion in fiscal 2026, the proposed joint venture would strengthen its manufacturing and engineering presence in India’s data centre market.
The company has also expanded its capabilities in the segment through acquisitions, including Hanley Energy Group, which specialises in critical power and energy management solutions, and Mikros Technologies, which provides liquid-cooling solutions for high-performance computing systems.