Proposed venture to manufacture AI racks, servers, networking, power and cooling systems as India’s data centre capacity expands
New Delhi / St. Petersburg : Adani Enterprises Limited (AEL), the flagship company of the Adani Group, and Jabil Inc., a global engineering, supply chain and manufacturing company, have signed a non-binding Memorandum of Understanding (MoU) to establish a proposed 50:50 joint venture (JV) for manufacturing and assembling artificial intelligence (AI) and data centre equipment in India.
The proposed venture aims to develop a multi-gigawatt AI infrastructure manufacturing platform to serve India’s growing data centre market and global demand for advanced computing infrastructure. The agreement remains subject to definitive agreements, applicable approvals and customary conditions.
The MoU follows the companies’ June 2026 announcement of their intention to establish a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India. Gautam Adani, Chairman of the Adani Group, said the AI revolution would require an industrial ecosystem integrating energy, hyperscale infrastructure, advanced computing and precision manufacturing. He said the proposed joint venture would combine Jabil’s engineering and manufacturing capabilities with the Adani Group’s strengths in energy, infrastructure and data centres, supporting the development of critical systems for the next generation of computing. Mike Dastoor, Chief Executive Officer of Jabil Inc., said the agreement marked another step towards establishing a scaled AI infrastructure manufacturing platform in India. He highlighted the opportunity to combine Jabil’s six decades of engineering and manufacturing expertise with Adani’s infrastructure and energy capabilities to deliver rack-level data centre solutions to hyperscalers in India and international markets.
AI Racks, Servers and Cooling Systems to Be Manufactured in India
The proposed joint venture would manufacture and assemble a range of equipment used in AI infrastructure and data centres, including AI racks, servers, storage systems and networking equipment. The portfolio would also include critical power and cooling infrastructure, such as power distribution units, liquid-cooling systems and transformers. These systems are essential for operating high-performance computing infrastructure and supporting the growing requirements of AI applications and digital services. The venture is expected to develop multi-gigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts. It would also offer installation and commissioning services. The initiative aims to establish an India-based manufacturing platform serving domestic requirements while supporting exports to international markets.
India’s Data Centre Capacity Expected to Reach 5–8 GW by 2030
India’s data centre capacity is projected to reach 5–8 gigawatts (GW) by 2030, driven by increasing AI adoption, cloud computing expansion and data localisation requirements. The companies estimate the global market opportunity at more than $3 trillion over the next seven years, reflecting the expected growth in investment in AI computing infrastructure. The policy environment is also expected to support investment in domestic data infrastructure. The Digital Personal Data Protection Act, 2023, provides a framework for personal data protection, while the Union Budget 2026 announced a tax holiday for data centres until 2047, as stated in the announcement.
Adani Group Expands Its AI Infrastructure Ambitions
The proposed joint venture 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 addition of hardware manufacturing would expand the group’s presence across the AI infrastructure value chain, complementing its existing interests in energy, logistics, infrastructure and data centres. For Jabil, the proposed venture would strengthen its manufacturing and engineering presence in India’s expanding data centre market. The company reported revenue of $36 billion in fiscal year 2026 and has expanded its data centre capabilities through acquisitions, including Hanley Energy Group, which specialises in critical power and energy management solutions, and Mikros Technologies, which focuses on liquid-cooling solutions for high-performance computing systems. The proposed partnership reflects the growing importance of domestic manufacturing in the global AI ecosystem, as demand for computing capacity, data centre infrastructure and advanced power and cooling technologies continues to expand.
