India is taking another step towards building its own AI infrastructure manufacturing capabilities. Adani Enterprises and Jabil, a US-based electronics manufacturing company that supplies components to Apple, have signed an agreement to establish a proposed 50:50 joint venture for manufacturing and assembling AI and data centre equipment in India.
The agreement, announced on Tuesday (October 13, 2026), outlines plans to serve the growing demand for computing infrastructure from cloud providers, technology companies and data centre operators. The partnership could also create opportunities for India to supply AI hardware to international markets.
AI Racks, Servers and Networking Equipment on the Production List
The proposed venture will manufacture a range of equipment required to operate modern data centres, including AI racks, servers, storage systems and networking hardware. These components form the physical foundation of facilities that process large volumes of data and support AI applications.
The companies are targeting multi-gigawatt manufacturing capacity for AI racks. This refers to the power capacity of the computing systems the racks are designed to support, rather than electricity generated by the manufacturing facility itself.
The initiative builds on an announcement made in June 2026, when the two companies first outlined their intention to develop an AI and data centre infrastructure manufacturing platform in India.
Power and Cooling Systems Will Also Be Included
Beyond servers and computing racks, the joint venture is expected to produce supporting equipment such as power distribution units, liquid-cooling systems and transformers. These components are becoming increasingly important as AI data centres accommodate more powerful processors and higher-density computing systems. Such infrastructure generates substantial heat and requires reliable power delivery to maintain performance.
Jabil brings engineering and electronics manufacturing experience to the proposed partnership, while Adani contributes its infrastructure capabilities and presence in India's energy and data centre sectors. Together, the companies aim to build a broader manufacturing ecosystem rather than concentrate solely on assembling servers.
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India Looks to Capture a Larger Share of AI Infrastructure Demand
India's expanding digital economy and growing interest in AI infrastructure could create demand for locally manufactured equipment. The proposed venture is also intended to serve international customers, potentially strengthening India's role in global technology supply chains. However, the extent of future exports will depend on customer demand, manufacturing execution and commercial agreements. The joint venture is still subject to definitive agreements, regulatory approvals and other customary conditions.