Archive · 25 Aug 2026
ESDS Flags Data Centre Protests As IPO Risks Amid Expansion
ESDS is a company that builds and operates data centres and provides cloud and artificial-intelligence services.
It wants to raise money by selling shares to the public.
The company now warns that local protests could make it harder to build new data centres.
Some residents are worried about water use, electricity demand, land and pollution.
ESDS says its centres are located in industrial areas or IT parks.
It also says it will avoid using fresh water and releasing effluents.
The company plans to use some IPO money to buy GPUs, servers and other equipment.
Its shares will be offered at ₹408–429 each, with the IPO opening on August 28 and closing on September 1.
ESDS Software Solutions increased its planned IPO size to ₹720 crore from ₹600 crore.
The company disclosed that protests by residents and activists could delay or prevent new data centres.
Protesters have raised concerns about water use, power-grid strain, land acquisition, displacement and public consultation.
ESDS plans to develop additional data centres in Saibabad and Kolkata, mainly in industrial areas or IT parks.
The IPO price band is ₹408–429 per share, with bidding scheduled from August 28 to September 1, 2026.
- Who
- ESDS Software Solutions, led by Promoter, Chairman and Managing Director Piyush Somani, and local residents and activists.
- What
- ESDS disclosed protests against data centres as a potential financial and strategic risk while announcing a ₹720 crore IPO.
- When
- The disclosure was published on August 25, 2026; the IPO is scheduled to open on August 28 and close on September 1, 2026.
- Where
- India, including planned data-centre locations in Saibabad and Kolkata.
- Why
- The company said protests could affect its ability to open data centres, reputation, stakeholder relationships, operations and cash flows.
Community and Activist Concerns
ESDS’s Expansion Case
Environmental and infrastructure impact
Community and Activist Concerns
Protesters have raised concerns about water consumption, power-grid strain, pollution, land acquisition and displacement.
ESDS’s Expansion Case
ESDS said its data centres will be located in industrial townships, industrial areas or IT parks, with no need for fresh water and no effluents flowing out.
Local opposition and project risk
Community and Activist Concerns
Residents and activists have protested data-centre projects, citing a lack of transparency and public consultation.
ESDS’s Expansion Case
ESDS said protests could harm its ability to open new centres and affect its reputation, relationships, operations and cash flows, making the issue necessary to disclose in its IPO filing.
Business outlook
Community and Activist Concerns
The protests create uncertainty around the pace and location of future data-centre development in India.
ESDS’s Expansion Case
Piyush Somani said market demand remains strong, with clients ordering 5,000–10,000 GPUs, and maintained that the data-centre business has significant potential.
- IPO size
- ₹720 crore, increased from the previous planned issue of ₹600 crore
- Price band
- ₹408–429 per equity share
- Minimum bid
- 34 equity shares, and multiples of 34 thereafter
- IPO dates
- August 28 to September 1, 2026
- Planned equipment purchases
- 600–800 GPUs, along with servers, network switches, storage and other cloud equipment
- Planned expansion
- Additional data centres in Saibabad and Kolkata
- Reported customer demand
- Clients are placing orders for 5,000–10,000 GPUs at a time