Adani Enterprises, the flagship company of the Adani Group, and US-based engineering and manufacturing company Jabil have signed a non-binding memorandum of understanding (MoU) to establish a proposed 50:50 joint venture for manufacturing and assembling artificial intelligence (AI) and data centre equipment in India.
Announced on October 13, 2026, the proposed partnership aims to build a large-scale AI infrastructure manufacturing platform to serve India’s growing demand for computing capacity and support exports to international markets. The agreement builds on the companies’ June 2026 announcement of plans to develop an AI and data centre manufacturing ecosystem in India.
AI Racks, Servers and Cooling Systems in Focus
The proposed joint venture will manufacture and assemble AI racks, servers, storage systems and networking equipment used in data centres. Its product portfolio will also include power distribution units, liquid-cooling systems and transformers required to operate high-performance computing infrastructure.
AI racks house computing systems used to train and run artificial intelligence models. As demand for generative AI, cloud computing and digital services increases, data centre operators require more powerful servers, reliable power infrastructure and advanced cooling technologies.
The venture is expected to develop multi-gigawatt AI rack manufacturing capacity and offer installation and commissioning services. The companies aim to supply equipment to hyperscalers, data centre operators, enterprises and other participants in the global AI ecosystem.
India’s Data Centre Market Expands
India’s data centre capacity is projected to reach 5–8 gigawatts by 2030, driven by growing AI adoption, cloud services and data localisation requirements. The companies also estimate that the global market opportunity for AI computing infrastructure could exceed $3 trillion over the next seven years.
The proposed partnership aims to establish a domestic manufacturing base that can serve Indian customers while supplying equipment to international markets. Local production of servers, racks and supporting infrastructure could strengthen India’s role in the global technology supply chain.
Adani Expands Its AI Infrastructure Ambitions
The proposed venture would extend the Adani Group’s presence across the AI value chain, beyond its existing interests in 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.
For Jabil, the partnership offers an opportunity to expand its engineering and manufacturing footprint in India’s growing data centre sector. The company brings decades of manufacturing and supply-chain expertise, while Adani contributes infrastructure, energy and data centre capabilities.
The proposed joint venture remains subject to definitive agreements, regulatory approvals and other customary conditions. The MoU establishes a framework for the collaboration, but the final venture will depend on the completion of these steps.
If established, the partnership could strengthen India’s domestic AI hardware manufacturing capabilities and create opportunities to supply critical computing infrastructure to customers in India and abroad.
