AI Infra Provider Yotta Eyes $1.5B IPO as Sovereign Compute Demand Surges
Hiranandani Group-backed Yotta Data Services prepares to file draft IPO papers with SEBI, expanding its Nvidia-powered GPU cluster to meet soaring AI enterprise demand across India and international corridors.
- Yotta Data Services plans to raise up to $1.5 Billion via a 100% fresh issue of equity shares by March 2027 (Q4 FY27).
- Company has already committed $4 Billion toward a planned $7 Billion AI infrastructure expansion roadmap by the end of FY27.
- Revenue mix has shifted: 50% of revenue now comes directly from GPU cloud leasing, with international customers accounting for 75-80% of consumption.
- Introduced customer-funded GPU financing structures: Enterprise partners finance hardware and retain 75% of server revenues prior to market-value buyback.
In what is slated to be one of the largest public market debuts in Indian technology infrastructure, data center and sovereign AI cloud operator Yotta Data Services is preparing to file its draft red herring prospectus (DRHP) with SEBI by October 2026.
According to Chief Executive Officer Sunil Gupta, the proposed initial public offering will seek to raise up to $1.5 Billion (approximately ₹12,500 Crore), consisting entirely of a fresh issue of equity shares. The capital proceeds will be deployed toward debt retirement, purchasing next-generation Nvidia graphics processing units (GPUs), and expanding Tier-IV sovereign cloud infrastructure to support escalating enterprise generative AI workloads.
Backed by the real estate and infrastructure powerhouse Hiranandani Group, Yotta has rapidly positioned itself as India's premier high-density AI compute provider. Valued at $3.9 Billion following a $150 Million non-institutional round earlier this year, the firm has charted a massive $7 Billion capital expenditure roadmap through FY27, with over $4 Billion already committed.
The business model has undergone a profound transformation. While colocation and managed hosting originally accounted for the majority of top-line revenues, GPU-as-a-Service now generates nearly half of Yotta's total earnings. Furthermore, India's favorable tax policy for foreign corporations providing global cloud services from Indian data centers has spurred international adoption—with overseas enterprises now representing 75% to 80% of its active customer base.
To counter the intense capital expenditure associated with cutting-edge Blackwell and Hopper GPU clusters, Yotta has pioneered an innovative revenue-sharing procurement model. Enterprise clients co-fund and maintain title on specific GPU banks, receiving 75% of the gross cloud revenue generated by their hardware, while Yotta retains 25% for facility operations and retains future repurchase rights at fair market valuation.
With domestic compliance laws like the Digital Personal Data Protection (DPDP) Act taking full effect, sovereign compute capacity within national borders has transitioned from a regulatory checkmark to an indispensable strategic asset for Indian banking, defense, and foundational LLM developers.