Yotta Plans IPO ‘Very Soon’ to Keep Up With AI Demand, CEO Says

(Bloomberg) -- Data center operator Yotta Data Services Pvt is in talks to tap capital markets "very soon" to meet surging demand for AI services, according to its chairman.

The company, which runs India's largest cluster of Nvidia Corp. chips, is "underway in talks" and seeking to list, Darshan Hiranandani told Bloomberg TV on Friday. He declined to comment on Yotta's valuation or the amount to be raised.

Yotta has engaged banks for an initial public offering that could raise as much as $900 million, Bloomberg previously reported. Chief Executive Officer Sunil Gupta told Dow Jones that the company is targeting a valuation of as much as $6 billion.

Yotta, like its global rivals, is ramping up spending to expand its computational resources. The company 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, Hiranandani said. 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."

India, the world's most populous country, has over a billion internet users and is expected to grow into one of the largest markets for cloud computing in the decades ahead. Its digitally savvy population and government support for tech initiatives make the South Asian country a key battleground for companies including Amazon.com Inc., Microsoft Corp., Alphabet Inc.'s Google and Meta Platforms Inc.

That's helping Yotta, which began work on an Nvidia cloud cluster in early 2024, capture global demand. 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.