Why Adani & Jabil will Make Data Centre Parts in India

Florida headquartered Jabil, one of the world’s biggest manufacturing services companies, has announced its intent to establish ‘a vertically integrated AI and data centre infrastructure manufacturing platform’ in India with green energy and infrastructure company Adani.

Jabil says the combination will be structured to directly address the explosive local and global demand for AI-ready data centre hardware.

A report from Deloitte notes that India is poised to become one of the fastest-growing leaders in AI. Its AI market is expected to reach between US$20bn and US$22bn by 2027, posting a compound annual growth rate of 30%.

The manufacturing platform

The manufacturing platform between the two companies is set to be built around three core pillars: giga-scale AI-rack architecture, a 360-degree AI infrastructure ecosystem and manufacturing scale to final documentation. 

Gautam Adani, Chairman of Adani, says: “The world is entering an intelligence revolution more profound than any previous industrial revolution. Nations that master the symmetry between energy and compute will shape the next decade. India is uniquely positioned to lead. 

“Our alliance with Jabil represents a decisive step in building India's complete AI infrastructure stack, from green power generation to world-class hardware manufacturing. Together, we will ensure India is not merely a consumer in the AI age, but a creator, builder, and exporter of intelligence.”

Jabil says the initiative addresses a global market opportunity over US$3tn over the next seven years. The two organisations are currently working on the definitive operational frameworks and formal documentation

AI rack manufacturing

The platform plans to deploy multi-GW high-density AI rack manufacturing capacity.

The companies say it will serve the critical infrastructure needs of tech giants, co-location facilities and enterprise data centres through the advanced manufacturing and integration of liquid-cooled AI racks, servers, storage and networking systems utilising state-of-the-art surface mount technology and complex box-build processes.

Beyond computing racks, the alliance encompasses full-spectrum white space and grey space device manufacturing. 

This includes power distribution units, coolant distribution units, transformers, switchgears, bus bars and advanced thermal management systems. 

Mike Dastoor, CEO of Jabil, says: “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. 

“As India becomes one of the world’s fastest-growing AI markets, the country’s skilled workforce and supportive business environment make it an attractive destination for this collaboration.”

India’s data centre capacity

Despite hosting nearly 20% of the world’s data, India has just 3% of the global data centre capacity, according to data from Deloitte.

The professional services network argues that the gap between India’s AI aspirations and compute infrastructure presents a strategic opportunity and a national imperative to build AI data centres at scale. 

Building on the opportunity, global tech companies are accelerating investment in India's digital infrastructure, with more than US$50bn in planned spending across data centre, cloud and AI ecosystems, according to statistics cited by Jabil.