Adani Enterprises and Jabil sign agreement for 50-50 hardware venture in India

Adani Enterprises Ltd and United States electronics manufacturing company Jabil Inc. signed a non-binding memorandum of understanding on October 13, 2026, to establish a 50:50 joint venture focused on manufacturing hardware in India. The proposed joint venture will manufacture and assemble hardware built specifically for data centers and computing systems.

The non-binding memorandum of understanding was signed by Adani Group Chairman Gautam Adani and Jabil Chief Executive Officer Mike Dastoor. Under the proposed structure, Adani Enterprises and Jabil will maintain equal 50 percent ownership stakes in the manufacturing joint venture.

The proposed business entity plans to target two primary markets for its products. The joint venture will supply domestic hyperscale companies operating in India, while also manufacturing hardware for export to international markets.

The planned manufacturing operations will cover a range of equipment required for server facilities. The joint venture intends to manufacture and assemble artificial intelligence racks, servers, storage units, and networking equipment. In addition, the venture plans to manufacture specialized power and cooling systems, including liquid-cooling systems, power distribution units, and electrical transformers.

In terms of production scale, the joint venture aims to build multi-gigawatt artificial intelligence rack manufacturing capacity. According to the announcement, this capacity is designed to supply and support computing systems that operate across several gigawatts of total power.

Alliance History and Corporate Capital Plans

The signing of the non-binding memorandum of understanding builds upon an existing relationship between the two companies. Adani Group and Jabil previously announced an initial strategic alliance in June 2026. The new memorandum of understanding moves that initial alliance toward a formal 50:50 joint venture model for hardware production.

The planned joint venture coincides with large-scale capital commitments by Adani Group in the digital infrastructure sector. Adani Group has committed $100 billion to develop 5 gigawatts of data centers by 2035. The planned data centers are designed to be ready for artificial intelligence workloads.

Global Market Estimates and Indian Capacity Expansion

Adani Enterprises and Jabil provided market forecasts alongside their joint venture announcement. The two companies estimate the global market opportunity for artificial intelligence computing infrastructure at over $3 trillion over a seven-year period.

This global projection comes as domestic demand for computing facilities continues to grow in India. Indian data center capacity is projected to reach between 5 gigawatts and 8 gigawatts by 2030. Hyperscaler operators have planned over $50 billion in spending in India to support that projected growth.