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.