THEBUSINESSBYTES BUREAU

NEW DELHI/FLORIDA, OCTOBER 13, 2026

Adani Enterprises Ltd 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, marking a strategic push to build a domestic manufacturing ecosystem for next-generation computing infrastructure.

The proposed venture, which follows the companies' announcement of a strategic alliance in June 2026, will manufacture AI racks, servers, storage and networking equipment, along with critical power distribution, liquid-cooling systems and transformers used in data centres.

The partnership remains subject to definitive agreements, applicable approvals and customary conditions, the companies said in a joint announcement.

The proposed joint venture is expected to have multi-gigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts. It will also offer installation and commissioning services.

The initiative comes amid rising demand for AI computing, cloud services and digital infrastructure, positioning India as a potential manufacturing and export hub for advanced data centre equipment.

"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," Gautam Adani, Chairman of the Adani Group, said.

He said the proposed partnership would help the group move up the AI value chain, from powering and hosting AI infrastructure to engineering and manufacturing critical systems underpinning next-generation computing.

The venture would combine Jabil's engineering and manufacturing capabilities with Adani's strengths in energy, infrastructure and data centres to support the development of hardware required by the global AI economy, he added.

Jabil Chief Executive Officer Mike Dastoor said the agreement marked another step towards establishing a scaled AI infrastructure manufacturing platform in India, a market expected to become increasingly important for domestic and global demand.

By combining Jabil's six decades of engineering and manufacturing experience with Adani's infrastructure and energy capabilities, the partnership aims to extend rack-level data centre solutions to hyperscale cloud and computing operators in India and overseas, he said.

India's data centre capacity is projected to reach 5-8 gigawatts by 2030, driven by accelerating AI adoption, cloud expansion and data localisation requirements. The companies estimate that the global market opportunity for AI infrastructure could exceed USD 3 trillion over the next seven years, supported by rising investments in computing capacity.

The proposed venture is intended to serve India's expanding domestic market while also catering to export demand, strengthening the country's role in the global AI hardware supply chain.

The government's policy environment is also expected to support investments in digital 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.

For the Adani Group, the proposed partnership adds a manufacturing dimension to its broader ambitions in AI infrastructure. The conglomerate has committed USD 100 billion towards developing 5 GW of green-energy-powered, hyperscale AI-ready data centres by 2035.

The proposed joint venture would complement its existing presence across energy, infrastructure, logistics and data centres, creating opportunities to integrate hardware manufacturing with power generation and digital infrastructure development.

For Jabil, the partnership would expand its manufacturing and engineering footprint in India's data centre market. The company reported revenue of USD 36 billion in fiscal year 2026 and has strengthened its capabilities in critical power management and advanced cooling technologies through the acquisitions of Hanley Energy Group and Mikros Technologies, respectively.