Yotta Eyes $1.5B IPO in Q1 2027 Amid AI Demand

Yotta Data Services is targeting an Initial Public Offering (IPO) in the first quarter of 2027, aiming to raise up to $1.5 billion.

The Indian data center operator plans to use these funds for strategic expansion and operational needs.

IPO Funding Objectives

• Repay existing debt.
• Acquire new graphics processing units (GPUs).
• Expand its sovereign cloud infrastructure, designed to keep data within national borders.

This move comes as demand for AI computing infrastructure escalates, with major global tech players like Google and Amazon increasing their presence in India.

Recent Capital & Valuation

Yotta, backed by the Hiranandani Group, is also securing pre-IPO capital, potentially reducing the final IPO size.

• Raised $150 million in primary growth capital recently.
• Valued the company at approximately 370 billion rupees ($3.9 billion) after this capital injection.

CEO Sunil Gupta stated the company is India’s largest provider of Nvidia-powered AI computing infrastructure.

India’s Market Appeal

India is increasingly attractive for AI infrastructure investments, according to Gupta, due to several factors.

• Power limitations and GPU scarcity in Western markets.
• Geopolitical uncertainties in the Middle East.

A significant portion, 75%-80%, of Yotta’s clients are global, with international customer confidence boosted by a 20-year tax holiday for foreign firms using local data centers, announced by the Indian government in February.

Innovative Financing Structures

Yotta is exploring alternative financing, where partners would purchase GPUs through special-purpose vehicles.

These partners would share generated revenue and transfer ownership to Yotta after a period of four to five years, diversifying capital acquisition.