Jabil and Adani Enterprises Eye Equal-Stake AI Hardware Partnership in India Under New MoU

A non-binding Memorandum of Understanding signed by Jabil Inc. (NYSE: JBL) and Adani Enterprises Limited (AEL), the Adani Group flagship, lays out the terms of a proposed equally owned joint venture that would produce and assemble artificial intelligence and data center equipment in India.

Agreement Details Emerge for Proposed Indian Manufacturing Platform

The announcement, issued October 13, 2026, from New Delhi and St. Petersburg, Florida, builds on a June 2026 statement in which the two companies declared their intent to form a strategic alliance aimed at creating an AI and data center infrastructure manufacturing ecosystem in the country.

Jabil CEO Mike Dastoor described the signing as a step forward in the partners' effort to stand up a scaled AI infrastructure manufacturing platform in India, which the company expects to grow in importance for domestic and global AI infrastructure demand alike.

The proposed venture still depends on definitive agreements being executed and on required approvals and customary conditions being met.

What the Venture Would Build

Under the framework, the joint venture would produce and assemble AI racks, servers, storage, and networking gear destined for data centers, with the racks designed to accommodate high-performance computing systems for AI workloads and other digital services.

The portfolio would extend to power and cooling equipment, including power distribution units, liquid-cooling systems, and transformers.

The companies expect the venture to reach multi-gigawatt AI rack manufacturing capacity, supporting computing systems with several gigawatts of combined power capacity, and to offer installation and commissioning services.

The stated ambition is a multi-gigawatt AI infrastructure platform in India covering AI racks, servers, networking, and power and cooling systems.

Once operational, the JV would supply AI ecosystem participants, hyperscalers, neoclouds, data center operators, and enterprises with infrastructure Made-in-India for India and for the world.

Demand Outlook Underpinning the Alliance

The proposed venture targets India's fast-growing data center market, where industry forecasts point to capacity of 5–8 GW by 2030 and more than USD 50 billion in planned hyperscaler spending across data centers, cloud, and AI ecosystems.

Growth in Indian data center capacity is being propelled by AI adoption, cloud expansion, and data localization requirements.

Globally, the companies size the opportunity at more than USD 3 trillion over the next seven years, fueled by investment in AI computing. The Indian manufacturing base would serve home demand while supporting exports.

Policy measures also shape the companies' outlook: the Digital Personal Data Protection Act, 2023, establishes a personal data protection framework, and this safeguard, together with the Union Budget 2026 tax holiday for data centers running until 2047, is expected to encourage investment in domestic data infrastructure.

What the Leaders Said

Adani Group Chairman Gautam Adani argued that the AI revolution will demand far more than breakthroughs in algorithms, calling instead for an entirely new industrial architecture in which energy, hyperscale infrastructure, advanced computing, and precision manufacturing converge to power the intelligence economy.

He framed Adani's vision as expanding up the AI value chain, from powering and hosting AI infrastructure to engineering and manufacturing the critical systems that will define the next generation of computing, and described the proposed JV with Jabil as a strategic step toward that future, pairing Jabil's engineering and manufacturing capabilities with Adani's integrated strengths in energy, infrastructure, and data centers to help build the physical backbone of the global AI economy.

Dastoor, meanwhile, said that combining Jabil's 60 years of engineering and manufacturing experience with Adani's infrastructure and energy capabilities would enable the companies to deliver rack-level data center solutions to more hyperscalers in India and worldwide, adding that Jabil looks forward to building on the work begun together in June.

Fit Within Each Company's Broader Strategy

The initiative dovetails with the Adani Group's USD 100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035 and would extend the Group's existing footprint across infrastructure, energy, logistics and data centers into hardware manufacturing.

For Jabil, which posted USD 36 billion in revenue in fiscal year 2026, the venture would deepen its engineering and manufacturing presence in India's data center market.

The company has recently broadened its data center capabilities through acquisitions, adding Hanley Energy Group, a provider of critical power and energy management solutions, and Mikros Technologies, which specializes in liquid cooling for high-performance computing systems.