STT Global Data Centres is preparing for a $500 million listing in Mumbai, ahead of a competitive IPO lineup in 2026.

      The data-centre operator, controlled by Singapore and with a minority stake held by Tata, has called on banks to present their proposals this month. The planned listing is set to precede the IPOs of Sify and Yotta, marking the initial wave of dedicated data-centre public offerings in India.

      According to Bloomberg, STT Global Data Centres India is gearing up for an initial public offering in Mumbai that could potentially raise as much as $500 million, as reported by sources familiar with the situation. Investment banks have been asked to submit pitches for advisory roles next week, with mandates anticipated to be allocated by the end of May.

      This operator is the Indian subsidiary of ST Telemedia Global Data Centres, a Singapore-based data-centre platform that was recently part of Temasek’s portfolio. ST Telemedia holds a 74% controlling interest in the Indian venture, while Tata Communications maintains the remaining 26% from the initial joint venture established in 2016. Bloomberg's characterization of the operator as Tata-backed does not accurately reflect the actual control dynamics.

      Bloomberg's report cites the $500 million figure from its sources, but various Indian and Asian media outlets have suggested a valuation range of $5 billion to $5.5 billion, with a draft prospectus expected in two to three months. These figures are not directly credited to the same sources, and STT GDC has not made any public comments, placing the estimates in the realm of plausible rather than confirmed.

      STT GDC India manages approximately 30 data centres in 10 Indian cities, with more than 400 MW of critical IT load capacity, based on its published data. The company's expansion is progressing ahead of the IPO. In February, it allocated ₹4,200 crore (approximately $500 million) for a 45 MW AI-ready facility in Chennai and has signed agreements with the governments of Karnataka, Maharashtra, Telangana, and Uttar Pradesh for additional sites.

      The timing of this move is significant. KKR and Singtel finalized an agreement in February to acquire STT GDC's parent company for around $5.2 billion, fully privatizing the global platform under a 75/25 ownership structure. The Mumbai IPO would represent the first major liquidity event for the Indian operation under its new owners and provide a means for Tata Communications to value its minority stake in the public market.

      This listing positions STT GDC at the forefront of upcoming IPOs. Sify Infinit Spaces has received SEBI approval for a ₹3,700 crore ($440 million) listing, which, once priced, will mark the first pure data-centre IPO in India. Yotta Data Services has indicated plans for a $900 million Mumbai listing in the fourth quarter, which could value it at nearly $6 billion based on its emphasis on GPU capacity.

      On a global scale, comparable activity is already underway. Blackstone has submitted a filing for a $1.75 billion data-centre REIT focused on the AI sector, and Fervo recently priced its $1.33 billion IPO, catering to investor interest in AI-related infrastructure.

      The justification for pursuing an Indian listing is clear. Google has committed $15 billion to a data-centre hub in southern India, while Microsoft has allocated $17.5 billion for expansion, and the February budget introduced a 20-year tax holiday for foreign cloud providers establishing capacity in India through 2047. STT GDC India would be tapping into the very hyperscaler pipeline its prospectus would need to identify.

      There are two uncertainties surrounding the deal. The first is which banks will secure the mandate and what valuation they believe will effectively clear the book. The second is whether the IPO will launch in 2026 or be pushed into the first half of 2027. The outcomes of the pitch meetings will determine the first uncertainty, while market conditions will dictate the second.