Yotta Plans $1.5 Billion IPO to Fund AI Expansion
The data center operator expects to file draft papers in October as GPU purchases and sovereign cloud projects increase its need for capital.
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Indian data center operator Yotta Infrastructure plans to raise as much as $1.5 billion through an initial public offering (IPO) in the first quarter of 2027.
The Hiranandani Group-backed company expects to submit its draft prospectus in October, co-founder and CEO Sunil Gupta told Reuters. The money would be used to reduce debt, purchase graphics processing units and expand cloud infrastructure designed to keep data within India.
The final IPO could be smaller if Yotta raises more private capital before the listing. Gupta did not disclose the company’s revenue, debt or the amount of funding it has secured to date.
Yotta said in August that it had raised $150 million in primary capital at a valuation of ₹37,000 crore, or about $3.9 billion. The proposed IPO would give the company further funding for an expansion that depends on expensive computing hardware and energy-intensive data centers.
The company describes itself as India’s largest provider of artificial intelligence computing infrastructure powered by Nvidia chips. Gupta said overseas companies account for between 75% and 80% of its customers.
Yotta is also considering arrangements in which outside investors would purchase GPUs for use in its data centers. The investors and Yotta would share the revenue generated by the chips, with ownership passing to Yotta after four or five years.
Such an arrangement would reduce the amount of capital Yotta must commit at the outset. It would also make the commercial terms important. Returns would depend on how intensively the GPUs are used, the prices customers will pay and how quickly newer chips reduce demand for the installed hardware.
The planned listing reflects the scale of funding required to build AI infrastructure. Operators must secure land, electricity, cooling equipment, network connections and computing hardware before customer demand is fully established. GPU capacity can also become commercially dated long before the surrounding data center reaches the end of its useful life.
For enterprise customers, Yotta’s expansion could increase the amount of high-performance computing available within India. That matters to companies that must keep sensitive or regulated information in the country, or that want local control over the infrastructure supporting their AI systems.
Customers evaluating such services will need to examine the generation and availability of the chips, the terms governing access during periods of high demand, and their ability to move data and workloads to another provider.
The draft prospectus, if filed in October, should offer the first detailed view of Yotta’s revenue, debt, capacity use and dependence on major customers.
