Data Centre Operator Yotta Targets $1.5 Billion IPO in Early 2027 Amid AI Demand

Data centre operator Yotta Data Services is preparing for an initial public offering in the January-March quarter of 2027, according to CEO Sunil Gupta. The Hiranandani Group-backed company plans to file its draft IPO papers in October, targeting to raise up to $1.5 billion.

The funds raised from the public offering will be allocated toward repaying debt, purchasing graphics processing units (GPUs), and expanding sovereign cloud infrastructure designed to keep data within national borders. This move aligns with a broader surge in demand for AI computing infrastructure as global technology giants scale up their operations in India.

Yotta is currently engaged in raising pre-IPO capital. According to Gupta, the actual IPO size may be smaller than initially planned because a significant portion of the fundraising target has already been achieved. While specific revenue figures and the exact amount raised so far were not disclosed, Gupta noted in a recent LinkedIn post that the company had secured $150 million in primary growth capital at a valuation of approximately $3.9 billion.

The data centre sector has seen rising capital requirements driven by increasing GPU costs and strong computing capacity demand. Yotta currently positions itself as India’s largest provider of Nvidia-powered AI computing infrastructure.

Gupta pointed out that India is increasingly viewed as an attractive destination for AI infrastructure investments. Factors such as power constraints and GPU shortages slowing expansion in the United States and Europe, alongside geopolitical uncertainties in the Middle East, have positioned India favourably in the global market. Global clients currently account for 75% to 80% of Yotta’s customer base.

Additionally, confidence among overseas customers has been supported by a 20-year tax holiday announced by the Indian government in February for foreign firms utilizing local data centres.

To support its hardware expansion, Yotta is exploring alternative financing structures. Under these arrangements, partners would purchase GPUs through special-purpose vehicles, share the revenue generated by the chips, and eventually transfer ownership of the hardware to Yotta after four to five years.

"The planned public listing by Yotta highlights the surging demand for robust AI computing infrastructure in India. As global tech giants expand their footprint and capital expenditure requirements grow due to rising GPU costs, exploring diverse financial structures and pre-IPO capital will be crucial. India's strategic advantages, bolstered by supportive government policies like tax holidays, are clearly positioning the country as a primary hub for global data centre investments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes