Yotta Data Services plans an early-2027 IPO worth up to $1.5 billion to acquire GPUs, repay debt and expand sovereign-cloud infrastructure in India.
Bengaluru: Indian data-centre operator Yotta Data Services is preparing to launch an initial public offering between January and March 2027 as demand for artificial-intelligence computing infrastructure accelerates.
The Hiranandani Group-backed company intends to file its draft IPO documents in October 2026, Chief Executive Officer Sunil Gupta told Reuters. Yotta could seek as much as $1.5 billion, although the public-offering component may become smaller because the company has already met a significant portion of its funding requirement through pre-IPO investment.
The proposed listing would rank among the largest Indian technology and digital-infrastructure IPOs.
Funds to support GPUs and sovereign cloud
Yotta plans to use the proceeds to purchase graphics processing units, repay debt and expand its sovereign-cloud infrastructure. Sovereign-cloud services allow organisations to store and process information within India while complying with domestic data-governance requirements.
High-performance GPUs are essential for training and operating generative-AI systems. Their rising prices and limited availability have forced data-centre companies to explore new funding arrangements.
Yotta describes itself as India’s largest provider of Nvidia-powered AI computing infrastructure. The company is backed by the Hiranandani Group; available reports do not establish Nvidia as an equity backer.
Yotta is also examining a financing model under which investment partners would purchase GPUs through special-purpose vehicles. The partners and Yotta would share revenue generated by the processors, with ownership transferring to Yotta after four or five years.
Company valued at nearly $4 billion
Gupta previously announced that Yotta had secured $150 million in primary growth capital at a valuation of approximately ₹370 billion, equivalent to around $3.9 billion.
He did not disclose Yotta’s current revenue or the total amount raised during its pre-IPO funding exercise.
The company says international customers now represent approximately 75% to 80% of its client base, illustrating India’s growing importance in the global AI-infrastructure market.
India attracts global AI investment
India is emerging as a major destination for AI and cloud investment as electricity constraints and GPU shortages slow data-centre expansion in parts of the United States and Europe. Geopolitical instability in the Middle East has also encouraged technology companies to consider alternative locations.
Google, Amazon and other global technology businesses are expanding their Indian cloud and data-centre operations to address rising demand from companies, government departments and AI developers.
Gupta said a 20-year tax holiday announced by the Indian government for qualifying foreign companies using Indian data centres had increased confidence among overseas customers.
Yotta’s IPO plan highlights the growing capital requirements of the AI sector. Building specialised data centres requires substantial spending on processors, electricity, cooling equipment and high-speed network infrastructure.
If market conditions remain favourable and regulatory approvals are obtained, Yotta expects to enter the stock market during the first quarter of 2027.
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