Adani Enterprises and Jabil signed a non-binding memorandum of understanding for a proposed 50:50 joint venture to manufacture AI and data center equipment in India. The plan targets multi-gigawatt AI rack manufacturing capacity and customers in India and international markets. Establishment of the venture remains subject to definitive agreements, approvals and other conditions.

The proposed product portfolio spans AI rack assemblies, servers, storage, networking equipment, power distribution units, transformers and liquid cooling. The companies also envision installation and commissioning services. Multi-gigawatt manufacturing capacity refers to the aggregate power rating of supported compute infrastructure, not electricity generation.

The initiative follows an Adani-Jabil strategic alliance announced in June 2026. Adani has separately outlined plans for $100 billion of investment in 5 GW of AI-ready data centers by 2035. Jabil brings electronics manufacturing, rack integration and supply-chain capabilities; it reported $36 billion in FY2026 revenue.

The venture’s investment amount, site locations, detailed manufacturing timetable and production commitments have not been disclosed.

Analysis

The proposal combines rack-level integration with power and thermal infrastructure, reflecting the systems-level requirements of AI data centers. It could strengthen Indian manufacturing supply chains, but the agreement is not yet a completed joint venture; commercial impact depends on execution and disclosed production plans.

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