Adani Enterprises shares extended gains for a third consecutive session on Tuesday, rising as much as 1.4% to ₹2,982.9 following the announcement of their strategic alliance with Jabil Inc. The stock has gained approximately 20.5% over the past year, significantly outperforming the Nifty 50 which has declined 4.1% during the same period. The company now commands a market capitalisation of more than ₹3.86 lakh crore, reflecting strong market confidence in the AI infrastructure partnership. This marks the third straight day of gains since the alliance announcement on Monday.
Adani Enterprises Ltd (AEL) and global manufacturing company Jabil have announced their intention to form a strategic alliance to establish a world-class, vertically integrated AI and data center infrastructure manufacturing platform in India. As per The Economic Times, the proposed partnership will combine Jabil's engineering and manufacturing capabilities with Adani Group's infrastructure, green energy, logistics and data center operations to develop a domestic manufacturing ecosystem for AI and data center infrastructure. The alliance integrates Jabil's six decades of advanced engineering, cross-industry manufacturing expertise, and proven hyperscale data center solutions with Adani Group's massive infrastructure footprint, green energy portfolio, logistics network, and rapidly expanding domestic data center operations. The companies are working on definitive operational frameworks and final documentation for the partnership, positioning this as a concrete step toward establishing India's AI hardware manufacturing capabilities.
The alliance plans to deploy multi-GW of high-density AI Rack manufacturing capacity in India, serving critical infrastructure needs of global hyperscalers, co-location facilities, and enterprise data centers through advanced manufacturing and integration of next-generation liquid-cooled AI racks, servers, storage, and networking systems utilizing state-of-the-art SMT (Surface Mount Technology) and complex box-build processes. The platform encompasses full-spectrum white space and grey space device manufacturing, including Power Distribution Units (PDUs), Coolant Distribution Units (CDUs), Transformers, Switchgears, Bus Bars, and advanced thermal management systems, delivering an end-to-end, design-to-deployment hardware ecosystem that extends beyond servers to include thermal and power management systems. The proposed platform will produce high-density AI racks, servers, storage systems, networking equipment and supporting power and cooling infrastructure, creating an integrated hardware ecosystem for data center developers.
India's data center market is at an inflection point, with industry forecasts projecting capacity to reach 5-8 GW by 2030, fueled by growing AI demand, cloud expansion, and data localization requirements. As global hyperscalers accelerate investment in India's digital infrastructure — with more than USD 50 billion in planned spending across data center, cloud, and AI ecosystems — the country's focus on data sovereignty is reshaping technology supply chains. The alliance addresses a global market opportunity exceeding $3 trillion over the next seven years, driven by structural investments in AI compute. The country's skilled workforce and supportive business environment make it an attractive destination for this collaboration, with the alliance positioned as a major step under the "Make in India" initiative. The Digital Personal Data Protection Act requirements are driving increased demand for domestically manufactured hardware and strengthening India's position as a strategic technology manufacturing hub. The Union Budget 2026's landmark tax holiday for data centers until 2047 significantly enhances the global export competitiveness of India-based manufacturing.
This initiative directly aligns with Adani Group's $100 billion commitment to develop 5 GW of green-energy-powered, hyperscale AI-ready data centers by 2035, complementing established collaborations with global technology leaders. As reported by CNBC TV18, Jabil recorded $29.8 billion in revenue for fiscal year 2025 and continues to lead the global AI data center buildout following strategic U.S. infrastructure expansions and acquisitions of Hanley Energy Group and Mikros Technologies. The alliance serves as a flagship paradigm for the next phase of the Make in India vision, transitioning the nation from an importer of digital infrastructure into a dominant global manufacturer and exporter of AI hardware. By anchoring high-value, deep-tech manufacturing domestically, the Adani-Jabil platform is expected to strengthen global supply chain resilience, generate thousands of highly skilled engineering and manufacturing jobs, and expand India's role in global AI infrastructure markets.
