Non-binding MoU signed for a proposed 50:50 joint venture with Jabil to make AI and data centre hardware in India
A non-binding MoU has been signed for a proposed 50:50 joint venture to make AI and data centre hardware in India.
By ScoutQuest · · 2 min read
- JV Structure
- proposed 50:50 joint venture
- India Data Centre Capacity Projection
- 5–8 GW by 2030
- Global Market Opportunity
- more than $3 trillion over seven years
What has been signed
Adani Enterprises Ltd and Jabil Inc. have signed a non-binding Memorandum of Understanding (MoU) setting out the framework for a proposed 50:50 joint venture to manufacture and assemble artificial intelligence (AI) and data centre equipment in India. The update describes the MoU as non-binding, so it records an intent and a framework rather than a completed transaction.
Still subject to conditions
- The proposed joint venture remains subject to execution of definitive agreements, receipt of applicable approvals and satisfaction of customary conditions.
- The MoU follows the June 2026 announcement of the two companies' intent to establish a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India.
What the venture would do
- Manufacture and assemble AI racks, servers, storage and networking equipment used in data centres, with the racks housing high-performance computing systems for AI applications and other digital services.
- Include equipment required to power and cool these systems, including power distribution units, liquid-cooling systems and transformers.
- Provide installation and commissioning services.
- The venture is expected to have multi-gigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts.
The market context cited
- India's data centre capacity is projected to reach 5–8 gigawatts (GW) by 2030, driven by AI adoption, cloud expansion and data localization.
- The companies estimate the global market opportunity at more than $3 trillion over the next seven years, driven by investment in AI computing.
- Industry forecasts project more than $50 billion in planned hyperscaler spending across data centre, cloud and AI ecosystems.
- The venture would provide a manufacturing base in India to serve domestic demand and support exports.
How it fits the two partners
- The venture is aligned with Adani Group's $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centres by 2035, adding hardware manufacturing to the group's presence across infrastructure, energy, logistics and data centres.
- For Jabil, which reported $36 billion in revenue in fiscal year 2026, the venture would expand its engineering and manufacturing footprint in India's data centre market.
- Jabil has also expanded its data centre capabilities through the acquisition of Hanley Energy Group, which provides critical power and energy management solutions, and Mikros Technologies, which specialises in liquid-cooling solutions for high-performance computing systems.
What investors may track
- The MoU is non-binding; the joint venture would take shape only on execution of definitive agreements and receipt of applicable approvals.
- The release carries forward-looking statements referring to risks and uncertainties, including the possibility of not being able to negotiate and execute a binding agreement, unexpected costs or liabilities that may arise from the potential alliance, and changes in economic, market, political or social conditions.
Also from Adani Enterprises
Adani Enterprises signed an MOU with Jabil for a 50/50 data center joint venture
14 Oct 2026
Board meeting on 28 October 2026 to consider and approve unaudited results for Q2 and H1 FY27
13 Oct 2026
Technical analyst Manish Hathiramani gave a sell call on Adani Enterprises
8 Oct 2026
More numbers
- Proposed joint venture ownership split50:50
- India's projected data centre capacity by 20305–8 GW
- Estimated global market opportunity over the next seven yearsmore than $3 trillion
- Planned hyperscaler spending across data centre, cloud and AImore than $50 billion
- Adani Group's commitment to develop AI-ready data centres$100 billion
- Green-energy-powered hyperscale data centre capacity targeted by 20355 GW
- Jabil revenue in fiscal year 2026$36 billion
- Jabil's network of sites worldwideover 120 sites
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