Adani Enterprises, Jabil Sign Pact for 50:50 AI Hardware Joint Venture in India

New Delhi: Adani Enterprises and US-based manufacturing firm Jabil have signed a non-binding agreement to set up a 50:50 joint venture to manufacture artificial intelligence and data centre equipment in India as demand for computing infrastructure accelerates.

The proposed venture would make and assemble AI racks, servers, storage and networking equipment, alongside power distribution systems, liquid-cooling equipment and transformers.

It is envisaged as a multi-gigawatt manufacturing platform serving Indian and global customers, including hyperscalers and data centre operators.

The agreement remains subject to definitive contracts, regulatory approvals and customary conditions, the companies said in a statement.

It follows an announcement in June of the companies’ intention to build an AI and data centre hardware manufacturing ecosystem in India.

The memorandum of understanding (MoU) sets out a proposed joint venture (JV) between Jabil and Adani for building a multi-gigawatt AI infrastructure platform in India – spanning AI racks, servers, networking, power and cooling systems.

The JV aims to serve India’s accelerating data centre demand, with industry forecasts projecting capacity of 5-8 GW by 2030 and more than USD 50 billion in planned hyperscaler spending across data centre, cloud, and AI ecosystems.

The companies estimate the global market opportunity at more than USD 3 trillion over the next seven years as investment in AI compute infrastructure continues to surge.

Once established, the JV would serve the world’s leading AI ecosystem players – from hyperscalers and neoclouds to data centre operators and enterprises – with infrastructure made in India for India and for the world.

India’s data centre capacity is projected to reach 5-8 gigawatts by 2030, driven by the expansion of cloud computing, AI adoption and data-localisation requirements, the companies said.

They estimate the global market opportunity for AI computing infrastructure at more than USD 3 trillion over the next seven years.

The venture would expand Adani’s presence beyond energy supply and data centre development into manufacturing the hardware that powers AI computing.

The group has committed USD 100 billion to developing 5 GW of green-energy-powered, AI-ready data centres by 2035.

For Jabil, which reported revenue of USD 36 billion in fiscal 2026, the partnership would deepen its exposure to India’s data centre market by combining its engineering and manufacturing capabilities with Adani’s energy and infrastructure assets.

Adani Group Chairman Gautam Adani said the proposed venture would help the group move further up the AI value chain, while Jabil Chief Executive Mike Dastoor said the partnership would support the expansion of rack-level data centre solutions for customers in India and overseas.

The companies said the proposed investment aligns with India’s ambitions to expand domestic digital infrastructure and establish the country as a manufacturing base for global AI demand.

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”.

Mike Dastoor, Chief Executive Officer (CEO), Jabil, 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.”

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.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)