Data centre operator Yotta Data Services is planning to launch an IPO in the January-March quarter of 2027, as reported by Reuters. The Hiranandani Group-backed firm is looking to file draft IPO papers in October and aims to raise up to $1.5 billion to repay debt, buy graphics processing units and expand sovereign cloud infrastructure that keeps data within national borders. CEO Sunil Gupta confirmed the company is currently raising pre-IPO capital and expects the IPO portion to be smaller than initially planned because much of its fundraising target has already been met. According to Gupta's latest statements to Business Standard, the company is also looking to raise capital through a pre-IPO funding round from private equity firms, with about five PE firms expected to participate in the funding round.
According to Gupta's LinkedIn post last month, Yotta had raised $150 million in primary growth capital at a valuation of about ₹37,000 crore ($3.9 billion). The company earlier this year also raised about $150 million from high-net-worth individuals and family offices, as reported by Business Standard. This recent capital raise demonstrates the strong investor confidence in the company's AI computing infrastructure business model. Through all the funding and the IPO, the company would not dilute more than 25 per cent of its stake and is likely to be valued at about $6 billion.
As reported by Reuters, Yotta is currently India's largest provider of Nvidia-powered AI computing infrastructure. The company is exploring innovative financing structures where partners would purchase GPUs through special-purpose vehicles, share revenue generated by the chips and eventually transfer ownership to Yotta after four to five years. This approach allows the company to scale its GPU capacity without upfront capital investment. Yotta is currently in the process of ordering 50,000 Vera Rubin GPUs and 45,000 GB300s, with the overall cost of acquiring the Vera Rubin chips around $7.5 billion, which includes all networking and associated equipment, plus an additional $750 million for data centre construction.
According to Gupta's statements to Reuters, India is becoming an attractive destination for AI infrastructure investment as power constraints and GPU shortages slow expansion in the United States and Europe, while geopolitical tensions create uncertainty in the Middle East. Global clients account for 75%-80% of Yotta's customer base, highlighting the international appeal of Indian data centre infrastructure. A 20-year tax holiday announced by the Indian government in February for foreign firms using local data centres has boosted confidence among overseas customers. As Gupta noted, "India is again coming to be a big green market for everybody," with global tech giants including Google and Amazon expanding their presence in India. The company builds cloud and AI infrastructure with several data centres in Mumbai, GIFT City in Gujarat, and Noida.
As reported by Reuters, data centre operators are increasingly turning to public markets as rising GPU costs and strong demand for computing capacity increase capital requirements. The surge in demand for AI computing infrastructure is driving companies like Yotta to seek public funding to support their expansion plans and meet growing client demands for high-performance computing solutions. The move comes as demand for AI computing infrastructure surges globally, with Yotta positioned to capitalise on this booming market trend. Indian data centre operators are increasingly turning to capital markets for their fundraising needs as demand goes through the roof, with the government aiming to make the country a hub for data centres. India generates about 20 per cent of the world's data but accounts for just 3 per cent of data centre capacity.
