Yotta Data Services is building a $2 billion AI hub in India powered by Nvidia GPUs, as demand for computing capacity outpaces supply. The company plans a pre-IPO funding round and aims to list within a year.
Yotta to Build $2 Billion AI Hub in India Using Nvidia GPUs
New Delhi: Indian data center company Yotta Data Services is preparing to build a $2 billion artificial intelligence (AI) hub in India. This hub will be based on Nvidia's high-performance GPU chips. The company states that due to the rapid expansion of AI models and the growing user base in India, demand for GPUs has outpaced supply.
Until now, India has lagged behind the US and China in developing its foundational AI models. Large-scale AI infrastructure in the country was also limited. However, the recent India AI Summit seems to be changing the picture.
At this summit, several Indian companies launched initial or limited versions of their AI models. This included Sarvam AI's 'Indus' chatbot. The company stated that the rollout is currently being implemented on limited compute capacity and will expand its reach over time.
According to Yotta co-founder and CEO Sunil Gupta, most of the Indian AI models launched at the summit were trained on Nvidia GPUs, which are hosted in Yotta's data centers. The company began purchasing Nvidia GPUs in 2023 and currently holds 60-70% of the country's GPU capacity.
Gupta said that the Indian user base of global AI companies is rapidly growing, further increasing the demand for local data centers and GPUs.
American tech companies like OpenAI, Google, and Perplexity AI are making their AI tools available in India at low or free rates.
Microsoft and Google have planned major data center investments in India. Recently, OpenAI signed an agreement with Tata Consultancy Services' data center business for 100 megawatts of capacity, which can be expanded to 1 gigawatt.
Yotta is planning a pre-IPO funding round of $1.2 to $1.5 billion to purchase additional GPUs and aims to list on the stock market within the next 12 months.
According to reports, India's total data center capacity is 1.93 gigawatts in 2025, which could reach 4 gigawatts by 2028. Experts believe that heavy investment in AI infrastructure could establish India as a global tech hub in the coming years.
