Adani Enterprises, the flagship company of the Adani Group, has entered into a non-binding agreement with US-based Jabil to establish a 50:50 joint venture dedicated to the manufacturing and assembly of advanced artificial intelligence (AI) and data center equipment in India. This strategic partnership aims to capitalize on India's burgeoning data center market and the global surge in demand for AI computing infrastructure.
Expanding India's AI Manufacturing Capabilities
The proposed joint venture will focus on producing a comprehensive range of critical hardware, including AI racks, servers, storage, and networking equipment essential for modern data centers. Furthermore, the product line will encompass power distribution units, liquid-cooling systems, and transformers, all vital components for operating high-performance computing (HPC) systems effectively.
The companies anticipate the venture will boast a multi-gigawatt AI rack manufacturing capacity. Beyond production, it will also offer installation and commissioning services, providing an integrated solution for data center development. This initiative follows a preliminary announcement in June 2026 regarding plans to build an AI and data center infrastructure manufacturing ecosystem in India.
Strategic Vision for the AI Value Chain
Gautam Adani, chairman of the Adani Group, emphasized the broader requirements of the AI boom, stating, "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."
Adani highlighted that the partnership would leverage Jabil's extensive engineering and manufacturing expertise, combined with the Adani Group's robust capabilities in energy, infrastructure, and data centers. Jabil's CEO, Mike Dastoor, echoed this sentiment, noting India's increasing importance for both domestic and global AI infrastructure demand. He added, "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."
India's Growing Data Center Opportunity
India's data center capacity is projected to reach an impressive 5-8 gigawatts by 2030. This growth is fueled by several factors, including accelerated AI adoption, the expansion of cloud services, and governmental data localization policies. Globally, the companies estimate the AI computing market opportunity to exceed $3 trillion over the next seven years.
The new manufacturing base in India is poised to serve this significant domestic demand and support exports. This venture also aligns with the Adani Group's commitment to invest $100 billion in developing 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035, further solidifying its presence across the energy, infrastructure, logistics, and data center sectors. Supportive policies like India's Digital Personal Data Protection Act, 2023, and a tax holiday for data centers until 2047 are expected to further bolster investment in domestic data infrastructure.