St. Petersburg-based Jabil plans to manufacture equipment for artificial intelligence data centers in India through a proposed joint venture with Adani Enterprises, one of the country’s largest infrastructure companies, as demand for the computing power behind AI continues to grow.
The companies announced Tuesday that they had signed a nonbinding agreement to establish a business they would own equally, combining Jabil’s manufacturing expertise with Adani’s operations in energy, infrastructure and data centers. The venture would serve customers in India and overseas, although the companies must still negotiate a final agreement and secure the necessary approvals.
The proposed manufacturing operation would produce the equipment that goes inside data centers, from racks holding powerful AI servers to storage and networking systems that connect thousands of computers. It would also make transformers, power distribution units and liquid-cooling systems needed to handle the electricity demands and heat generated by those machines, with plans to support computing systems requiring several gigawatts of power.
India’s data center market is expected to grow considerably over the next several years, with industry forecasts cited by the companies projecting between five and eight gigawatts of capacity by 2030. Major cloud and technology providers are also planning more than $50 billion in spending across the country’s data center, cloud computing and AI industries, creating an opportunity for manufacturers that can supply the equipment those facilities require.
For Jabil, which reported $36 billion in revenue for fiscal 2026, the partnership would expand its manufacturing presence in a market the company expects to become increasingly important to its global business. The companies estimate that worldwide investment in AI computing infrastructure could represent more than $3 trillion in market opportunities over the next seven years.
“The signing of this MoU is the next step forward in our shared efforts to establish a scaled AI infrastructure manufacturing platform in India, a market we believe will become increasingly important for both domestic and global AI infrastructure demand,” said Mike Dastoor, Jabil’s chief executive officer.
The agreement follows an announcement in June, when Jabil and Adani first disclosed plans to work together on manufacturing equipment for AI and data centers in India. Their latest agreement establishes a proposed ownership structure and identifies the products the business would make, bringing the companies closer to a formal partnership.
Adani has committed $100 billion to developing five gigawatts of AI-ready data centers powered by green energy by 2035, part of a broader expansion of its infrastructure business. Manufacturing the equipment used in those facilities would extend the group’s involvement beyond developing and operating data centers into supplying the technology inside them.
Jabil has been building those capabilities through acquisitions, including Hanley Energy Group, which specializes in power and energy management, and Mikros Technologies, a developer of liquid-cooling systems for high-performance computers. Those businesses give Jabil additional expertise in two areas that have become increasingly important as data centers accommodate more powerful AI systems.
Neither company has disclosed how much it expects to invest in the venture, where its manufacturing facilities would be located or when production could begin. The announcement also does not identify any expected employment changes or direct operational impact in St. Petersburg.