Adani Enterprises Limited, the flagship company of the Adani Group, and Jabil Inc., a global engineering, supply chain and manufacturing company, have signed a non-binding Memorandum of Understanding (MoU) to establish a proposed 50:50 joint venture for AI and data center equipment manufacturing in India. The partnership would bring together Adani’s energy, infrastructure and data center operations with Jabil’s engineering and manufacturing expertise to build a domestic production platform for critical computing hardware. The agreement establishes a framework for the proposed venture, but the companies must still execute definitive agreements and satisfy applicable approvals and customary conditions before proceeding. The move also advances a strategic alliance first announced in June 2026, when both companies outlined their intention to develop an AI and data center infrastructure manufacturing ecosystem in India.

Gautam Adani Frames Manufacturing as an AI Infrastructure Priority

Gautam Adani, Chairman of the Adani Group, positioned the partnership as part of a broader industrial transformation driven by AI rather than a standalone hardware manufacturing agreement. “The AI revolution will demand far more than just breakthroughs in algorithms. It will require an entire new industrial architecture where energy, hyperscale infrastructure, advanced computing and precision manufacturing converge to power the intelligence economy.” He also outlined the Group’s ambition to expand its role across the infrastructure stack, linking energy and data center investments with the production of the equipment that enables AI workloads.

“At Adani, our vision is to expand up the AI value chain evolving from powering and hosting AI infrastructure to engineering and manufacturing the critical systems that will define the next generation of computing.” The proposed joint venture would connect those ambitions with Jabil’s manufacturing capabilities, potentially giving Adani a more direct role in the hardware supply chain that supports large-scale AI deployments. “Our proposed joint venture with Jabil marks a strategic step towards this future, combining Jabil’s world-class 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.”

Jabil Sees India as a Growing AI Infrastructure Market

Jabil CEO Mike Dastoor described the MoU as the next step in building a manufacturing platform capable of serving India’s expanding AI infrastructure requirements and supporting customers beyond the domestic market. “The signing of this MoU is the next step forward in our shared efforts to establish a scaled AI infrastructure manufacturing platform in India, a market we believe will become increasingly important for both domestic and global AI infrastructure demand. Integrating Jabil’s 60 years of engineering and manufacturing expertise with Adani’s significant infrastructure and energy capabilities, we can bring our rack-level data center solutions to more hyperscalers in India and around the world. We look forward to building on the work we started together in June.”

The emphasis on rack-level solutions matters because AI infrastructure requires more than assembling individual servers. Manufacturers must integrate computing systems with networking, power delivery and cooling equipment while accounting for deployment requirements and operational reliability. A production platform that addresses these requirements could help customers coordinate hardware procurement and infrastructure installation as they expand AI capacity. However, the MoU does not establish a confirmed production start date, a final investment amount or a completed manufacturing facility.

AI Racks, Servers and Liquid Cooling Form the Hardware Portfolio

The proposed joint venture would manufacture and assemble AI racks, servers, storage systems and networking equipment for data centers. AI racks would house high-performance computing systems designed to support artificial intelligence workloads and other digital services, bringing multiple components together within an integrated deployment architecture. The product portfolio would extend beyond computing hardware into the equipment that powers and cools these systems. Planned categories include power distribution units, liquid-cooling systems and transformers, which address critical requirements across electrical distribution and thermal management. This broader portfolio could give the venture a role in supplying several interconnected layers of AI infrastructure rather than focusing exclusively on server assembly. High-density AI systems place substantial demands on electrical distribution and heat removal, particularly as operators deploy more powerful computing platforms within individual racks.

Liquid cooling and appropriately sized power infrastructure therefore form essential parts of the deployment equation, not optional additions to the computing equipment. The companies expect the proposed venture to develop multi-gigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts. The business would also provide installation and commissioning services, extending its potential involvement beyond equipment production into the deployment process. That combination could help customers coordinate hardware integration and installation, although the final scope and commercial terms remain subject to definitive agreements.

Adani’s $100 Billion Commitment Connects Energy and AI Hardware

The proposed venture aligns with the Adani Group’s $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035. The Group’s plans already span infrastructure, energy, logistics and data centers, while the manufacturing partnership would add another layer to that portfolio. The strategic connection is significant because large-scale AI infrastructure requires coordinated planning across power generation, electrical distribution, computing equipment and cooling systems. Adani’s infrastructure and energy capabilities could complement Jabil’s experience in engineering and manufacturing, creating a potential route to integrate equipment production with the wider infrastructure ecosystem. The proposed arrangement does not, however, establish that the joint venture will manufacture all the hardware needed for Adani’s planned data centers or supply the entire 5 GW target.

Jabil reported $36 billion in revenue in fiscal year 2026, giving the proposed venture access to the experience of a substantial engineering and manufacturing business. Its capabilities span engineering, supply-chain management and production, which could support the development of an AI infrastructure manufacturing platform in India. The company has also expanded its data center capabilities through acquisitions targeting two important infrastructure requirements. Hanley Energy Group provides critical power and energy management solutions, while Mikros Technologies specializes in liquid-cooling solutions for high-performance computing systems.

The agreement sets out a proposed ownership structure and broad manufacturing ambitions, but the non-binding MoU remains an early stage in the process. Definitive agreements, applicable approvals and customary conditions must still be completed before the companies can establish the venture on finalized terms. Several execution questions remain open, including the location and timing of manufacturing operations, the capital investment required, the production ramp-up schedule and the commercial arrangements with customers. The companies have also not specified how they will divide operational responsibilities or whether the proposed multi-gigawatt capacity will come online in phases.