The proposed Indian manufacturing venture will produce AI servers, racks, networking equipment and cooling systems as demand for computing infrastructure grows.

Adani Enterprises Limited and US-based Jabil Inc. have signed a non-binding Memorandum of Understanding (MoU) to establish a 50:50 joint venture for manufacturing and assembling artificial intelligence (AI) and data centre equipment in India.

The proposed venture would produce AI racks, servers, storage equipment, networking systems and essential power and cooling components. The companies expect the manufacturing facility to have multi-gigawatt capacity, serving customers in India and overseas.

The agreement follows an announcement made in June 2026, when the Adani Group and Jabil first expressed their intention to work together on AI and data centre hardware manufacturing.

The partnership has yet to become a final agreement. It remains subject to definitive contracts, applicable approvals and other customary conditions. The companies have not announced the manufacturing location, project cost, construction schedule or expected employment figures.

The proposed venture comes as India prepares for a sharp rise in demand for computing capacity. Businesses use data centres to store information, run websites, operate cloud services and process large volumes of digital information. AI systems require additional computing power to train models and respond to user requests.

According to India’s Ministry of Electronics and Information Technology, the country’s data centre capacity grew from around 375 megawatts (MW) in 2020 to approximately 1,500 MW in 2025.

Adani Enterprises and Jabil expect India’s data centre capacity to reach 5 to 8 gigawatts (GW) by 2030. One gigawatt equals 1,000 megawatts. Their estimate reflects expected growth in AI adoption, cloud computing and demand for data storage within India.

The companies also point to more than $50 billion in planned hyperscaler spending across India’s data centre, cloud and AI sectors. Hyperscalers are large technology companies that operate extensive computing networks and data centres.

They estimate the worldwide market opportunity for AI computing infrastructure at more than $3 trillion over the next seven years. This is a company estimate, rather than a confirmed measure of future sales.

The proposed manufacturing operation would cover several parts of a modern data centre. AI racks hold servers and other computing equipment, while networking systems allow those machines to exchange information.

The product range would also include storage equipment, power distribution units, transformers and liquid-cooling systems. These components help supply electricity to computing equipment and manage the heat produced during operation.

The venture would also offer installation and commissioning services, which involve setting up equipment and checking that it works as required.

Manufacturing these products in India could give data centre operators a domestic source for some of their equipment. The companies also expect the venture to support exports, although they have not provided sales targets or identified customers.

Gautam Adani, Chairman of the Adani Group, said the partnership would take the company further into AI hardware manufacturing.

“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 of Jabil Inc., said the agreement builds on the companies’ work since June.

“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 proposed venture fits into the Adani Group’s announced commitment of $100 billion to develop 5 GW of green-energy-powered, AI-ready data centres by 2035. The group already has interests in energy, infrastructure, logistics and data centres.

Jabil, listed on the New York Stock Exchange under the symbol JBL, brings six decades of engineering and manufacturing experience. The company reported $36 billion in revenue for fiscal year 2026.

Its data centre capabilities have also expanded through the acquisition of Hanley Energy Group, which provides critical power and energy management systems, and Mikros Technologies, which specialises in liquid cooling for high-performance computing.

The partnership would bring these areas of expertise together, although its final business structure and operating arrangements remain to be confirmed.

Government policy is another factor shaping India’s data centre market. The Digital Personal Data Protection Act, 2023, establishes a framework for handling personal data. The Union Budget 2026-27 also proposed a tax holiday until 2047 for eligible foreign companies providing services outside India through data centre services procured in the country, subject to specified conditions.

Such measures could encourage investment in domestic computing infrastructure. Yet expanding data centres also requires reliable electricity, suitable land and effective cooling systems. Water use and the pressure on local power supplies have drawn attention as large computing facilities expand.

For the Adani-Jabil venture, the next steps will determine how quickly the plan moves from an MoU to an operating manufacturing business. Its eventual scale, location, investment requirements and contribution to India’s AI hardware supply chain will become clearer when the companies announce their final agreements.

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