Indian data-centre operator Yotta Data Services is targeting an initial public offering between January and March 2027 and may seek up to $1.5 billion, chief executive Sunil Gupta told Reuters. The plan was reported on September 2, 2026.
How the company plans to use the money
Gupta said potential proceeds would be used to repay debt, buy graphics processing units and expand sovereign cloud infrastructure. GPUs are a central component of modern artificial-intelligence computing, while sovereign cloud services are designed to keep data and processing within specified national or regulatory boundaries.
The Hiranandani Group-backed company is looking to file draft offer papers in October, according to the interview. Both the filing timetable and the targeted January–March listing window remain plans and may change based on regulatory review and market conditions.
Why AI demand is driving expansion
Training and operating large AI systems require substantial computing power, electricity, cooling and high-speed connectivity. Companies that provide data-centre capacity and access to accelerators are trying to expand as Indian businesses and public institutions adopt AI services.
Reuters reported that large global technology companies are also increasing their Indian data-centre presence. This creates demand for infrastructure but also intensifies competition for customers, energy, equipment and specialised workers.
The proposed issue is not yet guaranteed
The figure of up to $1.5 billion is a fundraising objective, not money already raised. A draft red-herring prospectus, when filed, should provide audited financial information, risk disclosures, the proposed structure of the issue and a more precise use-of-proceeds plan.
A secondary report from The Economic Times repeated the proposed timing and intended uses of the funds. Both accounts trace the central information to Gupta’s Reuters interview, so investors should wait for regulatory documents before treating the terms as final.
Potential significance for India’s cloud market
A large listing would give public-market investors exposure to India’s AI-infrastructure buildout. It could also provide Yotta with capital to acquire expensive computing hardware and develop data-localisation services.
At the same time, data centres face execution risks including energy costs, access to water, hardware supply, debt servicing and rapidly changing chip technology. Demand forecasts can also shift as customers choose between owning equipment, renting capacity and buying cloud services.
Next milestones
The next verifiable steps would be submission of draft papers, review by the Securities and Exchange Board of India, appointment of issue advisers and publication of financial disclosures. Until those steps occur, the planned IPO should be described as a company target.
