The Adani Group and Jabil Inc. announced a strategic alliance on June 15, 2026, to establish a vertically integrated manufacturing platform for artificial intelligence and data center infrastructure in India. This collaboration seeks to transition the nation from a consumer of digital infrastructure into a primary exporter of high-end AI hardware for global hyperscalers.
The partnership leverages Jabil’s six decades of engineering experience in complex manufacturing alongside the Adani Group’s extensive energy and logistics network. By integrating these capabilities, the companies plan to produce advanced AI racks, storage systems, and networking equipment at a giga-scale capacity within India.
Technical operations will focus on sophisticated system integration and surface mount technology to meet the rigorous demands of modern data centers. The production scope extends to critical power and thermal management components, including Power Distribution Units, Coolant Distribution Units, transformers, and specialized bus bars.
This manufacturing ecosystem is designed to support the rapid deployment of liquid-cooled AI racks, which are essential for high-density computing environments. The alliance aims to provide an end-to-end infrastructure solution, allowing customers to source entire hardware stacks from a single integrated platform.
Engineers involved in the project will oversee the implementation of advanced thermal management technologies to ensure hardware reliability under extreme computational loads. The facility will utilize automated assembly lines to maintain precision in the production of high-frequency networking equipment and server components.
Supply chain logistics will be managed through the Adani Group’s existing infrastructure network to minimize lead times for global clients. This integration allows for the efficient movement of raw materials into the production facility and the subsequent export of finished, high-value AI hardware to international markets.
Gautam Adani, Chairman of the Adani Group, emphasized the importance of aligning energy production with computational capacity to secure a competitive advantage in the global market. He noted that the initiative is intended to position India as a creator and exporter of intelligence rather than merely a participant in the AI supply chain.
Mike Dastoor, CEO of Jabil, highlighted the strategic value of the collaboration in addressing the needs of the global AI ecosystem through scalable solutions. He stated that the partnership will allow for execution down to the rack level for both enterprise clients and hyperscalers, utilizing India’s growing engineering workforce.
This strategic collaboration with Adani Group is another step forward in our efforts to create long-term value for customers throughout the AI ecosystem by offering scalable solutions across the product lifecycle. By combining Jabil’s more than sixty years of engineering expertise and advanced manufacturing capabilities with Adani’s formidable infrastructure and energy platform, we can expect to execute down to the rack level for hyperscalers and enterprises here in India and across the globe.
The alliance is underpinned by a broader global AI infrastructure opportunity projected to exceed USD 3 trillion over the next seven years. This market growth is driven by the increasing demand for high-performance computing, which requires robust and efficient hardware architectures.
India’s domestic data center market is expected to expand to between 5 GW and 8 GW by 2030, supported by favorable government policies and tax incentives. The Union Budget 2026 provides a framework for these investments, offering tax benefits for data center development through 2047 to bolster the nation’s industrial competitiveness.
The integration of green energy into the manufacturing process serves as a critical component of the Adani Group’s broader commitment to sustainable infrastructure. By powering data centers with renewable energy, the initiative addresses the significant power consumption challenges associated with large-scale AI deployment.
The rollout of the first liquid-cooled rack production lines will serve as a primary benchmark for the partnership’s operational efficiency and technical output. Stakeholders are currently monitoring the development of the specialized manufacturing site as it prepares to scale for international export requirements.