India’s artificial intelligence infrastructure push is gaining momentum, with Yotta Data Services announcing plans to build a $2 billion AI hub powered by Nvidia GPUs and move towards a public listing.
The Mumbai-based data center company said demand for graphics processing units in India is currently outpacing supply, as domestic AI models scale and the country’s user base grows rapidly. India has so far lagged behind the U.S. and China in developing a native foundational AI model and large-scale AI infrastructure, but that gap is beginning to narrow.
At the recent India AI summit, several Indian firms unveiled early or limited versions of their AI models, including Sarvam AI’s Indus chatbot. “We’re gradually rolling out Indus on a limited compute capacity, so you may hit a waitlist at first. We will expand access over time,” said Pratyush Kumar, co-founder of Sarvam AI.
According to Sunil Gupta, co-founder, managing director and CEO of Yotta, most Indian AI models launched at the summit were trained on Nvidia GPUs hosted in Yotta’s facilities. The company began sourcing Nvidia GPUs in 2023 and now controls 60% to 70% of India’s GPU capacity.
Gupta said demand is also expected from global AI companies as their Indian user base expands. In recent months, U.S. technology firms such as OpenAI, Google and Perplexity have offered AI tools at low or no cost to millions of Indian users.
Among hyperscalers, Google plans to invest $15 billion in a data center hub in southern India, while Microsoft will invest $17.5 billion to expand its data center footprint. OpenAI recently signed up for 100 MW of capacity with Tata Consultancy Services’ data center business, with an option to scale to 1 GW. “Through OpenAI for India, we’re working together to build the infrastructure, skills, and local partnerships needed to build AI with India, for India, and in India,” said Sam Altman on Feb. 19.
Yotta plans to raise $1.2 billion to $1.5 billion in a pre-IPO round to fund additional GPU purchases and aims to list within the next 12 months.
India’s data center capacity stands at 1.93 GW in 2025 and is projected to reach 4 GW by 2028. Companies announced $277 billion in AI-related investments over the next 5 to 7 years, largely focused on infrastructure.
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