Adani, Jabil sign MoU for AI & data centre equipment JV

Chennai: Adani Enterprises and US-based engineering, supply chain and manufacturing company Jabil said on Tuesday that they signed a nonbinding memorandum of understanding (MoU) to form a 50-50 joint venture (JV) to manufacture and assemble artificial intelligence (AI) and data centre equipment in India.

The JV would look at manufacturing and assembling AI racks, servers, storage and networking equipment used in data centres. The portfolio would also include equipment required to power and cool these systems, including power distribution units, liquid-cooling systems and transformers, they said. The Adani Group and Jabil had announced in June that they intend to establish a strategic alliance to develop an AI and data centre infrastructure manufacturing ecosystem in India.

The proposed venture is expected to have multigigawatt AI rack manufacturing capacity, supporting computing systems with a combined power capacity of several gigawatts. It would also provide installation and commissioning services.


The companies said the venture would provide a manufacturing base in India to serve domestic demand and support exports. They estimate the global market opportunity to be more than $3 trillion over the next seven years, driven by investment in AI computing.

"The AI revolution will demand far more than just breakthroughs in algorithms," Adani Group chairman Gautam Adani said, according to a news release. "It will require an entire new industrial architecture where energy, hyperscale infrastructure, advanced computing and precision manufacturing converge to power the intelligence economy."'

The Adani Group's vision is to expand the AI value chain, evolving from powering and hosting AI infrastructure to engineering and manufacturing the critical systems that will define the next generation of computing, the chairman added.

Jabil believes India will become more important for domestic and global AI infrastructure demand, CEO Mike Dastoor said.

He added that the company could bring its rack-level data centre solutions to more hyperscalers in India and globally.