Adani and Jabil Forge 50:50 Joint Venture for AI Hardware
Adani Enterprises and Jabil have signed a memorandum to establish a joint venture focused on manufacturing AI and data center equipment in India.
The joint venture will produce AI racks, servers, and cooling systems.
Adani aims to develop 5 GW of AI-ready data centers by 2035.
The agreement is contingent upon final approvals and conditions.
On Monday, Adani Enterprises Limited and Jabil entered into a memorandum of understanding (MoU) to create a 50:50 joint venture aimed at manufacturing and assembling artificial intelligence (AI) and data center hardware in India. This partnership will focus on producing essential components such as AI racks, servers, storage, and networking equipment designed for data centers that support high-performance computing systems for various AI applications.
The MoU outlines a comprehensive portfolio that includes not only the manufacturing of AI-related equipment but also the necessary infrastructure to power and cool these systems. This encompasses power distribution units, liquid-cooling systems, and transformers, which are critical for maintaining optimal operational conditions in data centers. The venture is projected to achieve multi-gigawatt manufacturing capacity for AI racks, contributing to computing systems with substantial power capabilities.
Adani Enterprises reported a rise in its stock price, closing at Rs 2,694.00 per share following the announcement. The company emphasized that the joint venture is still subject to the execution of definitive agreements, obtaining necessary approvals, and meeting standard conditions. This collaboration follows an earlier announcement in June 2026, where Adani Group and Jabil expressed their intention to build a robust AI and data center infrastructure manufacturing ecosystem in India.
Gautam Adani, chairman of Adani Group, highlighted the significance of this partnership, stating that the AI revolution necessitates a complete overhaul of industrial architecture, integrating energy, advanced computing, and precision manufacturing to foster the intelligence economy. Jabil, an American multinational, aims to enhance its presence in India's data center market through this collaboration, which is seen as a strategic move to meet the growing demand for AI infrastructure both domestically and globally.
Looking ahead, this joint venture aligns with Adani Group's ambitious plan to invest $100 billion in developing 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035. As the demand for AI infrastructure continues to rise, this partnership is poised to play a pivotal role in shaping the future of data center manufacturing in India.
