Ahmedabad: Adani Enterprises Ltd and US-based Jabil Inc have signed a non-binding agreement to set up a 50:50 joint venture to manufacture artificial intelligence (AI) and data centre equipment in India. The proposed venture will manufacture AI racks, servers, storage and networking equipment, along with power distribution and liquid-cooling systems. It aims to build multi-gigawatt manufacturing capacity to meet domestic demand and support exports.The companies said the venture would serve hyperscalers, data centre operators, cloud service providers and enterprises. The agreement remains subject to definitive contracts, regulatory approvals and other customary conditions. The MoU follows an announcement in June 2026 on the companies’ plans to develop an AI and data centre infrastructure manufacturing ecosystem in India.India’s data centre capacity is projected to reach 5-8 gigawatts (GW) by 2030, driven by rising AI adoption, cloud expansion and data localisation, according to the companies. They estimate the global market opportunity for AI computing infrastructure at more than $3 trillion over the next seven years.The proposed venture will add hardware manufacturing to the Adani Group’s existing presence across energy, infrastructure and data centres. The group has committed $100 billion to develop 5GW of green-energy-powered, AI-ready data centres by 2035.“The AI revolution will demand far more than just breakthroughs in algorithms. It will require an entirely new industrial architecture where energy, hyperscale infrastructure, advanced computing and precision manufacturing converge,” Adani Group chairman Gautam Adani said.Jabil chief executive Mike Dastoor said, “The partnership would combine the company’s engineering and manufacturing expertise with Adani’s infrastructure and energy capabilities to expand rack-level data centre solutions in India and overseas.”Jabil reported $36 billion in revenue in fiscal 2026. The company has also expanded its data centre capabilities through acquisitions in critical power management and liquid-cooling technologies.The proposed venture comes as India works to expand its domestic data infrastructure. The Union Budget 2026 announced a tax holiday for data centres until 2047, while the Digital Personal Data Protection Act, 2023, provides a framework for personal data protection.
