Adani Enterprises, the flagship company of the Adani Group in Ahmedabad, in western India, and Jabil in St. Petersburg, Florida, have signed a memorandum of understanding to form a joint venture to make artificial intelligence and data center equipment in India. Each company would own half.
The agreement does not bind either side. The Economic Times reported that the venture still needs final agreements, regulatory approvals and the usual closing conditions. The announcement follows a June 2026 statement in which the two companies said they intended to build an alliance for AI and data center manufacturing in India.
What the venture will make
According to the companies, the venture will make and assemble AI racks, servers, storage and networking equipment. It will also supply the gear that powers and cools them: power distribution units, liquid-cooling systems and transformers. The companies plan multi-gigawatt rack manufacturing capacity and installation and commissioning services.
The customers will be hyperscalers, the largest cloud operators, along with newer AI cloud companies, data center operators and large enterprises. The companies said the venture will serve demand in India and support exports. They estimate the global market for AI computing infrastructure at more than $3 trillion over the next seven years.
Key figures behind the proposed Adani and Jabil venture.
The two partners
Jabil is an engineering, supply chain and manufacturing company. The Hindu BusinessLine reported that it earned $36 billion in revenue in its most recent fiscal year. Chief executive Mike Dastoor said in the release that the partnership will let Jabil bring its rack-level data center systems to more hyperscalers in India and abroad.
Adani Group has committed $100 billion to build five gigawatts of data centers powered by green energy by 2035, according to media reports. In the same release, Group chairman Gautam Adani said the AI era “will require an entire new industrial architecture where energy, hyperscale infrastructure, advanced computing and precision manufacturing converge to power the intelligence economy.”
Why it matters
An American manufacturer with $36 billion in revenue plans to build AI hardware in India with a partner that is also building data centers there. The companies say the venture will serve both demand in India and export markets. Until the final agreements are signed, it remains a plan.
