India’s Adani Group and Jabil Inc. (NYSE: JBL), a US-based engineering, supply chain, and manufacturing solutions company, have announced plans to form a strategic alliance to establish a vertically integrated AI and data center infrastructure manufacturing platform in India.
The proposed collaboration aims to combine Adani Group’s infrastructure footprint, renewable energy portfolio, logistics network, and expanding data center operations with Jabil’s six decades of engineering and advanced manufacturing expertise. The companies said the alliance is intended to address growing global demand for AI-ready data center infrastructure and strengthen India’s position in the AI hardware supply chain.
The announcement comes at a time when investments in AI infrastructure are accelerating worldwide. Demand for high-performance computing, cloud services, and AI workloads is driving large-scale investments in data centers and supporting technologies. Against this backdrop, India is emerging as a key destination for digital infrastructure development, supported by its growing technology ecosystem, policy support, and expanding renewable energy capacity.
Under the proposed alliance, the companies plan to develop giga-scale manufacturing capacity for high-density AI rack systems in India. These facilities are expected to produce and integrate next-generation liquid-cooled AI racks, servers, storage systems, and networking equipment designed for hyperscalers, colocation providers, and enterprise customers.
The manufacturing platform will leverage advanced Surface Mount Technology (SMT) and complex box-build processes to support the production of AI infrastructure hardware. The companies said the goal is to establish a large-scale domestic manufacturing base capable of serving both Indian and international markets.
In addition to AI compute hardware, the alliance will focus on a broader ecosystem of data center infrastructure products. Planned manufacturing capabilities include Power Distribution Units (PDUs), Coolant Distribution Units (CDUs), transformers, switchgears, bus bars, and advanced thermal management systems.
By covering both “white space” and “grey space” infrastructure components, the companies intend to provide a comprehensive, end-to-end hardware platform. The approach is designed to simplify procurement and deployment for data center developers by offering multiple critical systems through a single integrated manufacturing ecosystem.
According to the companies, the initiative is targeting a global market opportunity exceeding US$3 trillion over the next seven years. The growth is expected to be driven by continued investment in AI computing infrastructure, cloud platforms, and digital transformation initiatives across industries.
The two companies said they are currently working on definitive operational frameworks and formal documentation required to advance the collaboration and execute the proposed manufacturing roadmap.
The alliance aligns with broader trends shaping India’s data center and semiconductor ecosystem. Industry forecasts suggest India’s data center capacity could expand to between 5 GW and 8 GW by 2030, driven by rapid growth in AI applications, cloud adoption, and increasing data localization requirements.
Global hyperscalers have also intensified their focus on India. Industry estimates indicate more than US$50 billion in planned investments across the country’s data center, cloud, and AI infrastructure sectors in the coming years. At the same time, regulatory developments, including requirements under the Digital Personal Data Protection Act, are increasing the need for local infrastructure and domestically manufactured technology components.
Policy support is also expected to play a role. The Union Budget 2026 introduced a tax holiday for data centers extending until 2047, a move that industry observers believe could improve India’s competitiveness as a manufacturing and export base for digital infrastructure equipment.
For Adani Group, the proposed alliance supports its broader ambitions in digital infrastructure. The conglomerate has previously committed US$100 billion toward the development of 5 GW of green energy-powered, AI-ready data center capacity by 2035. The company has been expanding its presence across energy, logistics, infrastructure, and digital services as part of its long-term growth strategy.
For Jabil, the collaboration represents an opportunity to deepen its involvement in the global AI infrastructure market. The company reported revenue of US$29.8 billion in fiscal 2025 and has continued to expand its capabilities in data center technologies through strategic investments and acquisitions. Recent acquisitions, including Hanley Energy Group and Mikros Technologies, have strengthened Jabil’s expertise in power management and thermal solutions, two critical areas for modern AI data centers.
Commenting on the announcement, Adani Group Chairman Gautam Adani said the convergence of energy and computing infrastructure will shape the next phase of global industrial development. He added that the partnership is intended to help build a complete AI infrastructure stack in India, spanning renewable energy and advanced hardware manufacturing.
Jabil Chief Executive Officer Mike Dastoor said the alliance combines Jabil’s engineering and manufacturing capabilities with Adani’s infrastructure platform to create scalable solutions for hyperscalers and enterprise customers. He noted that India’s skilled workforce, growing AI market, and supportive business environment make it an attractive location for advanced technology manufacturing.
If finalized, the alliance could become one of the most significant AI infrastructure manufacturing initiatives announced in India to date. Beyond addressing domestic demand, the platform is expected to support exports, strengthen supply chain resilience, and contribute to the country’s ambition of becoming a global hub for AI and data center infrastructure manufacturing.
