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

      The Tata-minority data-centre operator, controlled by Singapore, has called for banks to submit proposals this month. The IPO is set to precede listings from Sify and Yotta in India's initial series of pure data-centre public offerings.

      According to Bloomberg, STT Global Data Centres India is gearing up for an initial public offering in Mumbai that could potentially raise up to $500 million, as reported by sources familiar with the situation. Investment banks will be invited to present their pitches for advisory roles next week, with decisions expected to be made by the end of May.

      The operator is the Indian division of ST Telemedia Global Data Centres, the Singapore-based platform that was recently part of Temasek’s portfolio. ST Telemedia possesses a 74% controlling interest in the Indian operations, while Tata Communications holds the remaining 26% from their original joint venture established in 2016. Bloomberg's portrayal of the operator as Tata-backed does not fully convey the actual structure of control.

      The $500 million figure is the only one sourced from Bloomberg's informants. Other Indian and Asian media summarizing the report have suggested a valuation range of $5 billion to $5.5 billion, with a draft prospectus expected in two to three months. These additional figures are not directly sourced from the same informants, and STT GDC has not issued any public comments, making them speculative at this stage.

      STT GDC India manages around 30 data centres across 10 cities in India, with a noted critical IT-load capacity exceeding 400 MW, based on its own disclosures. The expansion efforts are progressing ahead of the IPO.

      In February, the company announced an investment of ₹4,200 crores (approximately $500 million) for a 45 MW AI-ready facility in Chennai, and it has entered memorandums of understanding with the governments of Karnataka, Maharashtra, Telangana, and Uttar Pradesh for additional sites.

      The timing of this move is strategic. In February, KKR and Singtel reached an agreement to acquire STT GDC’s parent company for approximately $5.2 billion, thus transitioning the global platform to full private ownership with a 75/25 split.

      The Mumbai IPO will represent the first major liquidity event for the Indian operations under the new ownership, while also providing an opportunity for Tata Communications to evaluate its minority stake in the public market.

      Additionally, this positioning places STT GDC ahead in the queue for listings. Sify Infinit Spaces has received clearance from SEBI for a ₹3,700 crore ($440 million) IPO, set to become the first pure-play data-centre public offering in India when it is priced. Meanwhile, Yotta Data Services has indicated plans for a $900 million Mumbai IPO targeted for the fourth quarter, potentially valuing it close to $6 billion with its GPU-centric focus.

      On a global scale, there are comparable efforts underway, including Blackstone's application for a $1.75 billion REIT in the AI data-centre sector and Fervo’s recent $1.33 billion IPO, which resonates with current investor interest in AI infrastructure.

      The rationale for pursuing an Indian IPO is clear. Google has pledged $15 billion for a data-centre hub in southern India, Microsoft has committed $17.5 billion to expand its presence, and the February budget introduced a 20-year tax exemption for foreign cloud customers establishing operations in India through 2047.

      STT GDC India plans to tap into the same hyperscaler pipeline that its prospectus will need to identify.

      Two uncertainties overshadow the deal: the first concerns which banks will secure the mandate and what valuation they believe the offerings will achieve. The second uncertainty is whether the IPO will materialize in 2026 or be postponed to the first half of 2027. The upcoming pitch meetings will address the first uncertainty, while market conditions will determine the second.