Adani Enterprises and US-based manufacturing company Jabil 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. Announced on October 13, 2026, the proposed partnership will cover AI server racks, servers, storage systems, networking equipment, power distribution systems, liquid-cooling equipment and transformers.
The venture aims to build a multi-gigawatt manufacturing platform serving Indian and international customers, including hyperscalers, cloud computing providers and data centre operators. The agreement represents an expansion of Adani’s AI strategy beyond supplying energy and developing data centres into manufacturing the physical equipment needed to operate advanced computing infrastructure. The MoU remains non-binding and is subject to definitive agreements, regulatory approvals and customary conditions.
Key Takeaways
- 50:50 joint venture: Adani Enterprises and Jabil plan to establish an equally owned AI hardware manufacturing business in India.
- Products: The proposed venture will make and assemble AI racks, servers, storage, networking, power distribution and cooling systems.
- Multi-gigawatt capacity: The manufacturing platform is intended to support computing infrastructure measured in gigawatts of power capacity.
- India’s data centre opportunity: The companies project Indian data centre capacity could reach 5–8 GW by 2030.
- Adani’s wider AI ambition: The partnership complements the group’s stated $100 billion commitment to develop 5 GW of green-energy-powered, AI-ready data centres by 2035.
- Agreement not finalised: The MoU is preliminary, and the parties must complete definitive contracts and applicable approvals.
What Is the Adani-Jabil AI Hardware Joint Venture?
The proposed joint venture is designed to manufacture and assemble equipment that forms the physical foundation of modern data centres.
AI systems require much more than processors and software. They need server racks, high-speed networking, storage, electrical distribution and advanced cooling systems to operate reliably at scale. The proposed venture would address several of these requirements through a single manufacturing platform.
The companies intend to serve customers in India and overseas. These could include hyperscalers operating large cloud and AI infrastructure networks, specialised AI computing providers, enterprise customers and data centre operators.
The partnership combines two different sets of capabilities. Adani brings experience in energy, infrastructure, logistics and data centre development, while Jabil contributes engineering, supply-chain management and electronics manufacturing expertise.
The companies announced their intention to develop an AI and data centre manufacturing ecosystem in June 2026. The October agreement establishes a preliminary framework for the proposed 50:50 venture.
What will the joint venture manufacture?
| Product category | Role in AI infrastructure |
|---|---|
| AI server racks | House computing equipment in organised, high-density configurations |
| Servers | Run AI models, cloud workloads and other computing applications |
| Storage systems | Store and provide access to datasets, model parameters and application information |
| Networking equipment | Connect servers and storage systems for high-speed data transfer |
| Power distribution systems | Deliver electricity safely and efficiently to computing equipment |
| Liquid-cooling systems | Remove heat generated by high-performance processors and servers |
| Transformers | Support electrical infrastructure and power delivery |
| Installation and commissioning services | Help customers deploy and bring equipment into operation |
The inclusion of power and cooling equipment is particularly important. AI data centres can consume substantial amounts of electricity and generate considerable heat, making power management and thermal control critical to reliable operations.
Why Is Adani Expanding Into AI Hardware Manufacturing?
Adani’s proposed partnership with Jabil reflects a broader strategy to expand its position across the AI infrastructure value chain.
Traditionally, a company could participate in the digital economy by providing electricity, operating telecom networks or hosting data centres. However, the rapid expansion of AI computing is creating opportunities in the equipment and engineering systems that make those facilities work.
By entering manufacturing, Adani could potentially connect several parts of the infrastructure chain: energy generation, data centre development, hardware production and the deployment of computing systems.
Moving beyond energy and data centres
Adani Group has announced a commitment of $100 billion to develop 5 GW of green-energy-powered, AI-ready data centres by 2035.
The proposed Jabil partnership would complement that programme by adding a hardware manufacturing component. Instead of participating only in the provision of power and data centre capacity, the group would seek to manufacture and assemble some of the equipment installed inside these facilities.
This strategy could create operational opportunities if the group’s data centre projects and external customers generate sufficient demand for locally manufactured hardware.
However, the benefits are not automatic. Manufacturing requires competitive costs, reliable suppliers, engineering capabilities, quality control and customers willing to purchase the equipment. The commercial case will depend on the venture’s ability to secure orders and deliver products at competitive prices.
Why Jabil is a key partner
Jabil is a global engineering, supply-chain and manufacturing company. It provides manufacturing services and solutions to customers across multiple industries, including technology and electronics.
Its role could help the proposed venture establish production processes, supplier relationships and the technical capabilities required for complex data centre equipment.
Jabil reported approximately $36 billion in revenue for fiscal 2026, according to the companies’ announcement. Its experience in manufacturing and engineering is intended to complement Adani’s infrastructure and energy capabilities.
For Jabil, the partnership offers a route to participate in India’s expanding data centre market while potentially serving customers in other countries from an Indian manufacturing base.
India’s Data Centre Market Is Driving Demand
India’s growing use of cloud services, digital applications and AI is increasing demand for computing infrastructure.
Data centres provide the physical facilities needed to store information, run applications and process large amounts of data. AI workloads add further requirements because training and running advanced models can require large clusters of high-performance computing systems.
The Adani-Jabil announcement cites projections that India’s data centre capacity could reach 5–8 gigawatts by 2030. The companies also point to more than $50 billion in planned hyperscaler spending across India’s data centre, cloud and AI ecosystems.
These figures are market projections and planned spending estimates, not confirmed orders for the proposed joint venture.
Why AI data centres need specialised hardware
Traditional data centres already require servers, storage, networking and power infrastructure. AI-focused facilities can place additional demands on these systems because high-performance computing equipment often operates at higher power densities.
As a result, cooling and electrical distribution become increasingly important. A data centre can have access to advanced processors but still face operational constraints if its power delivery, thermal management or networking systems cannot support the equipment.
This creates a market for integrated solutions that combine computing racks with the systems required to power, cool and connect them.
The proposed joint venture is intended to manufacture several of these components, potentially allowing customers to source more of their infrastructure requirements from an Indian production platform.
The Global AI Infrastructure Opportunity
The opportunity extends beyond India. The companies estimate that the global AI computing infrastructure market could exceed $3 trillion over the next seven years as investment in AI systems continues to grow.
This estimate covers a broad market opportunity and should not be interpreted as the revenue that Adani and Jabil expect to generate from the proposed venture.
Global demand is being driven by investments in AI models, cloud platforms, enterprise applications and specialised computing services. Technology companies and data centre operators are expanding their infrastructure to support workloads that require large amounts of computing power.
However, this market also faces risks. AI investment can be cyclical, hardware technology evolves rapidly, and customers may change their preferred system designs as processors and computing architectures develop.
Manufacturers must therefore invest in engineering and production capabilities that can adapt to changing customer requirements.
Can India become a manufacturing hub?
The proposed venture aligns with India’s broader ambition to expand domestic electronics and advanced technology manufacturing.
Producing data centre equipment locally could create opportunities for Indian suppliers, manufacturing workers, engineers and logistics providers. It could also support exports if the venture meets international customer requirements on quality, cost and delivery.
Yet the depth of domestic manufacturing will matter. Assembly in India does not necessarily mean that every component is produced locally. The extent to which the venture develops domestic suppliers for electrical systems, cooling equipment, metal structures and other components will influence its broader industrial impact.
Its long-term competitiveness will also depend on access to specialised components, technical skills, reliable power, infrastructure and efficient logistics.
How the Partnership Could Benefit Both Companies
Benefits for Adani Enterprises
For Adani Enterprises, the venture could expand its participation in AI infrastructure and create a potential connection between its data centre investments and equipment manufacturing.
The group could gain experience in producing and deploying specialised hardware while developing relationships with global technology customers.
If the venture becomes commercially successful, it could also diversify the group’s exposure within the wider digital infrastructure sector. However, the financial contribution will depend on the venture’s eventual investment, production scale, sales and profitability, none of which have been fully disclosed in the preliminary agreement.
Benefits for Jabil
For Jabil, the partnership could deepen its manufacturing presence in India and provide an opportunity to serve rising demand for AI and data centre equipment.
A local manufacturing platform may help it serve Indian customers while building export capabilities. The partnership could also benefit from the combination of Jabil’s manufacturing expertise with Adani’s infrastructure relationships.
The final commercial impact will depend on the terms of the definitive agreement, customer commitments, capital requirements and the pace at which the proposed facility or facilities become operational.
What Investors Should Watch Next
The announcement is strategically significant, but investors should distinguish between a preliminary agreement and a fully operational business.
Several developments will determine whether the proposal translates into a meaningful commercial opportunity.
- Definitive agreements: Whether both companies finalise binding contracts and disclose the venture’s structure and responsibilities.
- Investment commitments: How much capital each partner will contribute and whether additional funding will be required.
- Manufacturing locations: Where production facilities will be established and when operations are expected to begin.
- Capacity and timelines: The planned production capacity, commissioning schedule and ramp-up milestones.
- Customer orders: Whether hyperscalers and data centre operators commit to purchasing equipment from the venture.
- Domestic sourcing: The proportion of components sourced from Indian suppliers compared with imported components.
- Financial disclosures: Revenue expectations, operating margins, capital expenditure and the potential effect on Adani Enterprises’ consolidated financial performance.
The announcement does not disclose a final investment amount for the joint venture, a binding order book or a confirmed commercial launch date. Those details will be important for assessing its financial significance.
The Bigger Picture
The Adani-Jabil partnership reflects a change in how companies are approaching the AI economy. The opportunity is no longer limited to developing AI models or operating cloud platforms. It increasingly includes the physical systems required to run them, from high-density server racks and networking equipment to electrical infrastructure and liquid cooling.
For India, the proposed venture could support the development of a domestic manufacturing base for advanced data centre equipment and potentially create export opportunities. For Adani, it offers a path to expand from energy and infrastructure into a wider range of AI hardware capabilities. Jabil, meanwhile, brings manufacturing and engineering experience to a market that both companies expect to grow.
The eventual outcome will depend on execution rather than the announcement alone. The venture must secure customers, build competitive manufacturing capabilities and adapt to rapidly changing technology requirements. Until definitive agreements are signed and production plans become clearer, the proposal should be viewed as a strategic opportunity rather than an established revenue stream.
Looking Ahead
The next milestones are expected to include definitive agreements, regulatory approvals and further details on the venture’s manufacturing footprint, investment requirements and operating timetable. Customer commitments and the ability to produce competitive AI hardware at scale will be particularly important in determining the partnership’s commercial prospects.
Over the longer term, India’s data centre expansion could create demand for domestically manufactured servers, racks, networking systems and supporting electrical and cooling equipment. The Adani-Jabil venture is positioned to pursue that opportunity, but its contribution to the group’s financial performance and India’s manufacturing ecosystem will become clearer only as the project progresses.
Frequently Asked Questions
What have Adani Enterprises and Jabil announced?
They have signed a non-binding MoU outlining a proposed 50:50 joint venture to manufacture and assemble AI and data centre equipment in India.
What products will the joint venture make?
The proposed portfolio includes AI server racks, servers, storage and networking equipment, power distribution systems, liquid-cooling equipment and transformers. The venture also intends to provide installation and commissioning services.
Will the joint venture manufacture AI chips?
The announcement focuses on AI racks, servers, storage, networking, power and cooling systems. It does not establish a plan to manufacture AI semiconductor chips.
How much will the joint venture invest?
The companies have not disclosed a final investment amount for the proposed venture in the preliminary MoU announcement.
What is the expected capacity?
The venture is envisaged as a multi-gigawatt manufacturing platform. This refers to the scale of the computing infrastructure its equipment is intended to support, not an announced number of individual servers.
Why is India important for this partnership?
India’s expanding cloud, AI and data centre markets could create demand for equipment manufactured locally. The proposed venture also aims to serve international customers from an Indian production base.
Is the joint venture finalised?
No. The agreement is a non-binding MoU. Definitive contracts, applicable approvals and other customary conditions must be completed before the proposed venture can proceed.
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