Whalesbook
Uber is establishing its first data center in India through a partnership with the Adani Group. This move positions India as a key hub for the ride-hailing company's global technology operations. Uber CEO Dara Khosrowshahi announced the development following a meeting with Adani Group Chairman Gautam Adani. The facility is expected to be operational by the end of 2026 and will support the company's goal to "build at scale — from India, for the world."
This new data center will be crucial for testing and deploying Uber's technologies. By investing in India, Uber aims to utilize the country's engineering talent and digital environment to develop and scale solutions for its global operations. On May 13, 2026, Uber Technologies (UBER) shares were trading around $76.68 with 17.24 million shares exchanged. Adani Enterprises (ADANIENT.NS) traded near ₹2,500 with 1.46 million shares. The collaboration elevates Uber's India presence from a market operation to a central development hub in its worldwide strategy.
The data center market in India is growing rapidly, expected to expand from about $10 billion in 2025 to over $22 billion by 2030, with annual growth rates between 10% and 15.8%. This expansion is driven by increased digital transformation, greater cloud use, growing demand for AI and machine learning capabilities, and government initiatives. Adani Group, via its AdaniConneX joint venture, is a major player in this infrastructure growth, aiming for 1 GW of capacity by 2030. The Uber partnership fits into Adani's wider digital plans, which include a $15 billion AI data center campus with Google. Other companies like Reliance Industries, NTT, CtrlS, and Airtel's Nxtra are also expanding their data center presence in India.
Adani Enterprises faces a competitive environment. Its valuation, with P/E ratios reported from 17.97 to 150.5, suggests significant growth expectations, though its market capitalization is around ₹3.12 trillion with a three-year return on equity of 7.57%. The company competes across multiple sectors, including with Reliance Industries in renewable energy and other data center providers. Data center operations face significant costs, especially for power and cooling in India's climate. Uber also faces challenges, including revenue growth that has not met expectations, potential regulatory issues, and competition from local services like Rapido.
Looking ahead, the broader Indian data center market is set for significant growth, with projections of $45.7 billion in investment by 2033, fueled by AI integration and large-scale expansion. This expansion promises robust demand for infrastructure. While the outlook for the sector is positive, investor sentiment and company valuations show different pictures for Uber and Adani Enterprises.