Adani Enterprises and Jabil Inc have signed a memorandum of understanding to create a 50:50 joint venture aimed at manufacturing AI and data centre equipment in India, addressing the growing demand for AI-ready infrastructure both locally and internationally.
- MoU signed between Adani Enterprises and Jabil for AI hardware JV
- Focus on manufacturing AI racks, servers, power and cooling systems
- Supports India’s expanding data infrastructure and export ambitions
What happened
Adani Enterprises, the flagship company of the Adani Group, and US manufacturing firm Jabil Inc have formalized their collaboration by signing a non-binding memorandum of understanding. This pact aims to set up a joint venture with equal ownership to manufacture and assemble AI and data centre hardware in India. The product portfolio will include AI racks, servers, network equipment, storage solutions, as well as power distribution and cooling technologies.
This partnership solidifies an earlier agreement and marks a strategic move to develop a local manufacturing base for AI infrastructure components. The companies are awaiting regulatory clearances and final agreements before moving ahead with commercial operations. This initiative dovetails with Adani’s broader investments into hyperscale, renewable energy-powered data centers planned through 2035.
Why it matters
India’s data center market is anticipated to grow significantly, reaching between 5 and 8 gigawatts of capacity by 2030, driven by surging AI adoption, cloud services expansion, and regulatory mandates on data sovereignty. Building manufacturing capabilities domestically ensures greater control over supply chains and aligns with government policies encouraging local production under the DPDP Act.
Moreover, the $3 trillion projected global opportunity in AI compute infrastructure presents considerable export potential. Adani and Jabil’s joint venture not only addresses India’s internal demand but positions the consortium to participate in global supply chains for next-generation AI systems, leveraging Adani’s strengths in energy and infrastructure with Jabil’s manufacturing expertise.
What to watch next
It will also be important to observe partnerships within the AI and cloud sector, including potential collaborations with hyperscale cloud providers. With industry rivals like Reliance Industries and Amazon also ramping up substantial AI and data infrastructure projects in India, this joint venture signals intensifying competition and innovation in the domestic technology manufacturing landscape.