Hyperscale data center operator Yotta set for IPO ‘very soon’, eyes valuation of $6 billion

Hiranandani Group-backed Yotta Data Services is in talks to tap capital markets “very soon”, Chairman Darshan Hiranandani told Bloomberg Television. While Hiranandani declined to comment on Yotta’s valuation or the amount to be raised, Chief Executive Officer Sunil Gupta told Dow Jones that the company is targeting a valuation of as much as $6 billion.

According to Bloomberg, Yotta has engaged banks for an initial public offering that could raise as much as $900 million.

Yotta Data Services

Founded in 2019, Yotta Data Services is India’s leading provider of hyperscale data centers, sovereign cloud, and AI compute infrastructure.

According to the company’s website, Yotta operates Tier III and Tier IV campuses in Navi Mumbai and Greater Noida, delivering colocation, cloud, managed IT, and AI platform services. Its offerings include Yntraa Cloud, India’s MeitY-empanelled sovereign cloud, and Shakti Cloud, an NVIDIA-powered AI compute platform for large-scale model training and deployment.

The company, which runs India’s largest cluster of Nvidia chips, like its global rivals, is ramping up spending to expand its computational resources.

'Can't keep up with demand'

According to Bloomberg, Yotta expects to hit 400 megawatts of capacity over the next 12 to 18 months, and has the ability to tap $20 billion worth of graphics processing units. Data centers need to deploy huge numbers of advanced processors to handle calculations simultaneously to train or run AI models.

“Demand is something we can’t keep up with,” Hiranandani said. “In fact, it’s more about rolling out the infrastructure and getting deliveries on time.”

Hiranandani said he expects the dollar-denominated share of the company’s sales to rise to 80% next year. That compares with about 80% of revenue earned in Indian rupees and 20% from dollar-paying clients last year.

Global demand and AI infrastructure scale are “multiplying,” outpacing the data center operator’s rupee-based revenue growth, the chairman said.

Earlier this week, IntelliDB Enterprise, one of India's leading AI-Powered database management platforms, announced a strategic partnership with Yotta Data Services.

According to a release by IntelliDB Enterprise, the partnership is aimed at enterprises, government organizations, and regulated industries looking to modernize database infrastructure and build AI applications while ensuring complete data sovereignty and regulatory compliance. Together, the companies will offer fully managed database services hosted on Yotta's sovereign cloud infrastructure, enabling enterprises to modernize mission-critical workloads while maintaining complete data sovereignty and regulatory compliance.

IntelliDB's platform is built on PostgreSQL's engine, which is one of the world's most widely used database technologies, with IntelliDB's own core features and AI capabilities.