The Adani Jabil data centre joint venture aims to manufacture artificial intelligence (AI) infrastructure equipment in India, as demand for computing capacity and data centres expands.
Adani Enterprises Limited (AEL), the Adani Group’s flagship company, and US-based Jabil Inc. signed a non-binding memorandum of understanding (MoU) on October 13, 2026. The agreement outlines plans for a proposed 50:50 joint venture to manufacture and assemble AI and data centre equipment.
However, the venture remains subject to definitive agreements, applicable approvals and customary conditions. The companies had announced their intention to establish a strategic alliance in June 2026.
The proposed platform would cover AI racks, servers, storage, networking equipment, power distribution and cooling systems. It would also provide installation and commissioning services.
Adani Jabil Data Centre Joint Venture to Manufacture AI Hardware
The proposed venture plans to build multi-gigawatt manufacturing capacity for AI racks and related infrastructure in India. These racks house high-performance computing systems used for AI workloads and other digital services.
Its planned product portfolio includes servers, storage and networking equipment, alongside power distribution units, liquid-cooling systems and transformers. These components support the operation of energy-intensive computing infrastructure.
The companies aim to serve hyperscalers, neocloud providers, data centre operators and enterprises in India and international markets.
Adani Group Chairman Gautam Adani said the partnership would extend the group’s role in the AI value chain, from powering and hosting infrastructure to engineering and manufacturing critical systems.
Jabil CEO Mike Dastoor said the proposed platform would combine Jabil’s engineering and manufacturing expertise with Adani’s infrastructure and energy capabilities. He added that the partnership could expand access to rack-level data centre solutions for customers in India and overseas.
India’s Data Centre Capacity Could Reach 8 GW by 2030
India’s data centre capacity is projected to reach between 5 GW and 8 GW by 2030, according to the companies’ announcement. Growth in AI adoption, cloud computing and data localisation is expected to drive demand.
The companies also estimate that the global market opportunity for AI infrastructure could exceed $3 trillion over the next seven years.
The proposed joint venture would establish a manufacturing base in India to serve domestic demand and support exports. Its focus on racks, servers, networking, power and cooling equipment would cover several essential components of AI-ready data centres.
India’s regulatory and tax environment also features in the investment outlook. The Digital Personal Data Protection Act, 2023, establishes a framework for personal data protection. Meanwhile, the Union Budget 2026 announced a tax holiday for data centres until 2047, according to the announcement.
Proposed Venture Aligns With Adani’s AI Data Centre Plans
The proposed hardware manufacturing partnership would complement Adani Group’s existing investments across energy, infrastructure and data centres.
The group has committed $100 billion towards developing 5 GW of green-energy-powered, hyperscale AI-ready data centres by 2035. The proposed joint venture would add equipment manufacturing to this broader strategy.
For Jabil, the partnership would expand its presence in India’s data centre infrastructure market. The company reported revenue of $36 billion in fiscal year 2026, according to the announcement.
Jabil has also expanded its data centre capabilities through acquisitions of Hanley Energy Group, which provides critical power and energy management solutions, and Mikros Technologies, which specialises in liquid-cooling solutions for high-performance computing.
The proposed venture’s final structure, implementation and manufacturing scale will depend on the completion of definitive agreements and the necessary approvals.
