STT Global Data Centres India Pvt. is considering an initial public offering in Mumbai that could raise as much as $500 million, according to reports from NDTV Profit. The data center service provider, backed by Tata Communications Ltd., has invited investment banks to pitch for advisory roles, with presentations expected next week and appointments targeted by the end of the month. The company is seeking a valuation of $5 billion to $5.5 billion and may file its draft prospectus within the next two to three months. The IPO could take place as early as the end of this year, though details including size and timing could change.
Interest in data center assets has surged globally, fueled by the rapid growth of artificial intelligence and cloud computing, as reported by NDTV Profit. In India, total investment in the industry is projected to exceed $100 billion by 2027, according to CBRE Group Inc.. Companies including Alphabet Inc.'s Google and OpenAI have outlined expansion plans in the country, while Reliance Industries Ltd. is also pursuing a large-scale data center project that could cost as much as $30 billion. STT India would become one of a handful of pure-play data center operators to tap the Indian public market, along with peers such as Sify Infinit Spaces Ltd. and Yotta Data Services Pvt., with Sify preparing to launch its offering soon.
Founded in 2007 as Tata Communications Data Centres, the company is a step-down subsidiary of Singapore-based ST Telemedia Global Data Centres, which holds a 74% stake, according to rating agency ICRA, as reported by NDTV Profit. Tata Communications owns the remaining 26%. The company operates more than 30 data centers across 10 cities in India, with over 400 megawatts of critical IT load capacity, according to its website. A representative for STT Global Data Centres didn't immediately respond to requests for comment.
