Adani joins hands with US firm Jabil to manufacture AI hardware in India

The proposed joint venture between Adani and Jabil intends to establish manufacturing capabilities for AI and data center hardware within India. This includes components like AI racks, servers, and liquid-cooling systems, which are crucial for high-performance computing. The companies project the venture will achieve multi-gigawatt AI rack manufacturing capacity, serving both domestic and export markets.

Adani Group's chairman, Gautam Adani, indicated the move is part of the company's strategy to expand its role in the AI value chain. Rather than solely powering and hosting AI infrastructure, Adani aims to engineer and manufacture the physical systems. This aligns with the group's broader commitment to invest $100 billion in green-energy-powered, AI-ready data centers by 2035.

Jabil's participation brings its manufacturing and engineering expertise, which the company expects to integrate with Adani's strengths in energy and infrastructure. The collaboration is positioned to address the growing demand for AI infrastructure in India, where data center capacity is projected to reach 5-8 gigawatts by 2030. This growth is driven by AI adoption, cloud expansion, and data localization policies, supported by incentives like a tax holiday for data centers until 2047.