Adani Enterprises and US-based manufacturing company Jabil have signed a non-binding memorandum of understanding to explore a 50:50 Indian joint venture for data-centre and AI infrastructure hardware. The proposed scope includes AI racks, servers, storage and networking equipment, alongside power-distribution and cooling components. The companies have said the final arrangement will depend on definitive agreements, regulatory approvals and other closing conditions.
The plan aims to establish manufacturing and assembly capacity in India and potentially provide installation and commissioning services for high-density computing systems. AI data centres require more than processors: racks, power distribution, transformers, networking and thermal-management systems are essential to running equipment safely and reliably. Local production could support supply-chain resilience and shorten some delivery routes, although the extent of domestic value addition will depend on where components are sourced and how much engineering takes place locally.
Adani and Jabil previously announced a broader strategic collaboration in 2026. Adani has separately outlined plans for large AI-ready data-centre infrastructure, while Jabil supplies engineering and manufacturing services to technology customers. The proposed venture would move the partnership further toward making hardware, rather than simply operating facilities that use it.
The companies describe a target of multi-gigawatt rack-manufacturing capacity and have cited a large long-term market opportunity. These are forward-looking company estimates, not secured orders, current output or guaranteed revenue. Real production will depend on the definitive JV agreement, investment, customer contracts, component supply, energy availability, export economics and demand from cloud operators.
The proposed 50:50 structure would also require the partners to settle governance, capital contribution, intellectual-property, sourcing and operating responsibilities. Those details were not fully established by the preliminary MOU.
The next milestones are a signed definitive agreement, the announced location and scale of facilities, capital commitments, customer contracts and a construction or production timetable. For readers evaluating the industrial significance, these confirmed milestones matter more than a headline capacity figure: an MoU signals intent, while financing, orders and commissioning demonstrate execution.
