Adani Enterprises and Jabil Partner on 50:50 Joint Venture for AI Hardware in India
Adani Enterprises Limited (NSE:ADANIENT) and US-based Jabil Inc. (NYSE:JBL) have signed a non-binding memorandum of understanding to form a 50:50 joint venture in India. The proposed business will build a multi-gigawatt manufacturing platform for artificial intelligence and data center equipment, including servers, AI racks, storage, networking devices, power distribution systems, and liquid-cooling hardware.
The deal expands Adani's presence beyond powering and hosting data infrastructure into manufacturing the equipment required for high-performance computing. It supports Adani Group's wider pledge to invest $100 billion to create 5 gigawatts of green-energy-powered data centers by 2035. The companies estimate the global market opportunity for AI computing infrastructure at over $3 trillion over seven years, driven by cloud growth, AI adoption, and data localization.
Investors should watch for the completion of definitive agreements and required regulatory approvals. Future milestones include construction timelines for manufacturing plants and initial supply contracts with global hyperscalers, cloud service providers, and enterprise clients.
Key points
- Adani Enterprises Limited (NSE:ADANIENT) and Jabil Inc. (NYSE:JBL) signed a non-binding MoU for a 50:50 joint venture in India.
- The joint venture will manufacture AI racks, servers, storage, networking gear, power distribution, and liquid-cooling solutions.
- The venture aligns with Adani Group's $100 billion plan to build 5 gigawatts of green-powered data centers by 2035.
- India's data center capacity is projected to reach 5 to 8 gigawatts by 2030, with a $3 trillion global market opportunity.
- The proposed agreement is subject to definitive contracts, regulatory approvals, and customary closing conditions.
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How we writeDisclaimerQuestions and answers
What are Adani Enterprises and Jabil planning to build in India?
The companies signed a non-binding MoU for a 50:50 joint venture to manufacture AI and data center hardware, including servers, racks, storage, networking equipment, power distribution systems, and liquid-cooling units.
How does the joint venture fit into Adani Group's long-term strategy?
The partnership helps Adani expand beyond powering and hosting data centers into hardware manufacturing. It aligns with the group's $100 billion commitment to develop 5 gigawatts of green-energy-powered data centers by 2035.
Is the joint venture between Adani Enterprises and Jabil final?
No, the agreement is currently a non-binding memorandum of understanding and remains subject to definitive agreements, regulatory approvals, and customary closing conditions.