The alliance aims for gigawatt-scale production of AI racks and advanced hardware, backed by a $100 billion infrastructure investment plan
Adani Enterprises and Jabil Inc. have announced plans to form a partnership that would create a vertically integrated AI and data center infrastructure manufacturing platform in India. The goal is ambitious: gigawatt-scale production of AI racks and advanced hardware, positioning India as a global export hub for digital infrastructure equipment.
What the partnership actually involves #
The collaboration is designed to merge Adani’s sprawling infrastructure capabilities with Jabil’s manufacturing and engineering strengths into a single, end-to-end platform. This isn’t Adani’s first move into the data center space. The conglomerate has been building relationships with some of the biggest names in tech, including a joint venture with EdgeConneX and hyperscale projects involving Google, Microsoft, and Flipkart.
One project worth highlighting: a 1 GW Google campus in Visakhapatnam, announced in October 2025.
Jabil reported $29.8 billion in FY2025 revenue and has made strategic acquisitions recently to bolster its capabilities in power and thermal solutions for AI infrastructure.
The partnership fits neatly into Adani Group’s broader $100 billion investment plan focused on developing 5 gigawatts of green-energy-powered, hyperscale AI-ready data centers by 2035.
Why India, and why now #
The Union Budget for 2026 introduced a tax holiday for data centers extending all the way to 2047.
What this means for investors #
The risk factors are real, though. Adani Group has faced scrutiny in recent years over its corporate governance and financial structure. Building out gigawatt-scale manufacturing is an execution challenge of enormous complexity, requiring coordination across energy, construction, supply chain, and technology domains simultaneously. And while India’s policy environment is currently favorable, a 21-year tax holiday is only as reliable as the political will sustaining it through multiple election cycles.
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