Adani Enterprises and US-based manufacturing company Jabil have signed a non-binding agreement to establish a 50:50 joint venture for manufacturing and assembling artificial intelligence and data centre equipment in India. The proposed partnership comes as demand for computing infrastructure accelerates domestically and globally.

The venture will produce AI racks, servers, storage and networking equipment, along with power distribution systems, liquid-cooling equipment and transformers. It is planned as a multi-GW manufacturing platform serving Indian and international customers, including hyperscalers, neoclouds, data centre operators and enterprises.

The memorandum of understanding remains subject to definitive agreements, regulatory approvals and customary conditions. It follows the companies’ announcement in June that they intended to develop an AI and data centre hardware manufacturing ecosystem in India.

India’s data centre capacity is projected to reach 5-8 GW by 2030, supported by cloud computing growth, AI adoption and data-localisation requirements. The companies estimate that the global market for AI computing infrastructure will exceed USD 3 tn over the next seven years, while planned hyperscaler spending across data centres, cloud and AI ecosystems in India is expected to exceed USD 50 bn.

The partnership would extend Adani’s activities beyond energy supply and data centre development into manufacturing hardware used for AI computing. Adani Group has committed USD 100 bn towards developing 5 GW of green-energy-powered, AI-ready data centres by 2035. Jabil, which reported fiscal 2026 revenue of USD 36 bn, would contribute its engineering and manufacturing capabilities, while Adani would provide energy and infrastructure expertise.

The proposed facility would have multi-GW AI rack manufacturing capacity and support computing systems with a combined power capacity of several GW. Its scope would also include installation and commissioning services, with equipment intended for both India and overseas markets. The companies said the investment would support India’s efforts to expand domestic digital infrastructure and become a manufacturing base for global AI demand.