Indian startup Yotta Data Services Private Limited is aiming to raise approximately $500 million to invest in its data center parks. The company is currently in discussions with private credit funds, including Oaktree Capital Management LLP, to secure the necessary financing, according to sources familiar with the matter.

In addition to Oaktree, Yotta has also engaged in talks with Cerberus Capital Management LP and Davidson Kempner Capital Management LP regarding potential funding. The firm is expected to pursue a bilateral deal, with finalization anticipated in early 2025. While the terms of the deal are still being negotiated, bank credit remains a viable option.

This fundraising initiative highlights the increasing demand for capital in India, the world’s fastest-growing major economy, where infrastructure development is a key priority. The country’s $10 billion private credit market is experiencing a surge in activity, with local firms vying for market share against global competitors.

Yotta, backed by real estate mogul Niranjan Hiranandani, is also investing in high-performance computing capabilities by procuring chips from Nvidia Corp. This move aims to assist corporations in India in developing their own artificial intelligence services.