Adani Group and Jabil will build multi-gigawatt AI rack manufacturing capacity in India. They're targeting liquid-cooled AI racks, servers, and storage for hyperscalers, a high-value niche. This aims to capture a slice of India's projected 8 GW data center market by 2030.
How We Got Here
Adani announced a $100 Bn investment in February to develop AI-ready data centers powered by renewables by 2035. This Jabil partnership represents the first concrete manufacturing push under that broader commitment, after earlier talks with Meta and Google.
The Numbers
- The manufacturing includes supporting components like power distribution units, coolant distribution units, and advanced thermal management systems.
- India's data center capacity is projected to reach 5-8 GW by 2030, driven by AI demand and the DPDP Act.
- Reliance partnered with Meta last week to set up a 168 MW AI-enabled data center in Gujarat’s Jamnagar within two years.
- Amazon committed $12.7 Bn for cloud infrastructure in India by 2030, while OpenAI plans a 1 GW data center with TCS.
- The global market for AI compute infrastructure is projected to exceed $3 Tn over the next seven years.
What Happens Next
🇮🇳 Why This Matters for India
For founders building AI-focused SaaS or deeptech in Bangalore and Hyderabad, locally-manufactured liquid-cooled racks could mean faster access and better supply chain control.
The Take
This deal signals Adani’s intent to control the entire AI data infrastructure stack, from power generation to custom compute hardware. This deep vertical integration gives them a significant cost and supply chain advantage over competitors simply buying off-the-shelf.
Source:
Inc42 ↗