Adani Enterprises and Jabil plan 50:50 joint venture to make AI and data-centre hardware in India
Adani Enterprises and US manufacturer Jabil have signed a non-binding MoU for an equal joint venture to manufacture and assemble AI racks, servers, storage, networking and the power and cooling equipment around them in India. The venture targets multi-gigawatt rack capacity and builds on a strategic alliance announced in June.
Adani Enterprises and Jabil, the Florida-based electronics manufacturing services company, have signed a memorandum of understanding to form a 50:50 joint venture for AI and data-centre hardware manufacturing in India. The MoU is non-binding and the venture remains subject to definitive agreements and regulatory approvals, but it sets out a clear product scope.
The proposed venture would manufacture and assemble AI racks, servers, storage and networking equipment, together with the infrastructure that powers and cools them: power distribution units, liquid-cooling systems and transformers. Installation and commissioning services are also envisaged, and the companies describe multi-gigawatt rack manufacturing capacity as the ambition.
The agreement formalises a strategic alliance the two companies announced in June and sits alongside the Adani Group's stated commitment to invest $100 billion in green-powered, AI-ready data-centre capacity by 2035. The companies cite projections that India's data-centre capacity will reach 5 to 8 GW by 2030, up from around 1.5 GW today.
No capital figure or factory location has been disclosed. Analysts flagged the execution of definitive agreements, the investment outlay and site selection as the next milestones to watch.
Why it matters
Domestic manufacturing of racks, cooling and power gear addresses the import dependency that HSBC and others have identified as the Achilles heel of India's compute ambitions. Chips will remain imported for years, but the surrounding hardware is where local value-add is achievable, and Jabil brings the process expertise to do it at scale.
Indicops view
For public-sector compute procurement, a credible domestic supplier of integrated rack-level systems would simplify both make-in-India compliance and long-term support. We advise government data-centre planners to track this venture and similar ones, and to write tenders that specify rack-level performance and serviceability rather than brand-specific components, so that domestic manufacturers can compete as they come online.
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