New Delhi: US manufacturer Jabil and Adani Enterprises have signed a non-binding memorandum of understanding to set up an equally owned company to make AI and data centre equipment in India.
The venture would build server racks, servers, storage and networking equipment, as well as power distribution units, liquid cooling systems and transformers. It would also install and commission the equipment. The partners are aiming for rack production capacity measured in gigawatts.
The agreement builds on an alliance the two companies announced in June 2026. A final deal still depends on binding agreements, regulatory approvals and other conditions.
“The AI revolution will demand far more than just breakthroughs in algorithms.”
Gautam Adani, Chairman, Adani Group
The companies cite estimates that India’s data centre capacity will reach 5 to 8 gigawatts by 2030. The Adani Group has committed $100 billion to build 5 gigawatts of AI-ready data centres powered by renewable energy by 2035. Jabil had revenue of $36 billion in fiscal 2026.
The Narrative Republic: Partners in India’s Growth
Our analysis
Adani wants to make the equipment that goes inside its data centres, not just build the data centres. A joint venture would give it an in-house supplier for its own expansion and a new business selling to other operators. If the deal goes through, India will be making AI hardware, not only housing it.
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