ESDS Software Solutions shifts focus to AI factories, each factory to add 10% revenue

Company eyes up to 1,000% CAGR from AI factories and ₹3,000 crore revenue from Sharon AI GPU business

By Vallari Sanzgiri

After a 20-50 per cent annual growth, ESDS Software Solutions has aired plans to move beyond the traditional data centre business towards AI factories. Company Managing Director and Chairman Piyush Somani talked of plans for a 10 per cent revenue boost with every AI factory deployed in coming months in a conversation with businessline.

“We are done with the traditional data centre business. We will not further expand to that business model. It may grow at a 30-40 per cent CAGR, but AI factories have the potential to grow at a 500 per cent or even 1,000 per cent CAGR,” said Somani.

The company currently utilises close to 85 per cent of its existing data centre capacity and is increasing capacity for the next three data centres expected to be up and running within the next three months. Somani also expects software services and managed services to shrink in the near future as the infrastructure business (data centres, GPUs and the future AI factories) scales and takes up a larger slice of the revenue share.

“In the long run the infrastructure services may even go up to 90 per cent of total revenue share,” he said.

While mindful of the component crunch, Somani during the company’s earnings call pointed out that India is the only country which has got 40-50 gigawatts surplus to be given for AI factories over the next four to five years. This gives India a huge advantage, as per the management.

“We are targeting India also because 40-50 gigawatts surplus power will be available for AI factories and the government is also trying to promote AI factories in India,” said Somani. By December, one of the company’s AI factories will go live, followed by another factory in May.

The company also expects a revenue of ₹3,000 crore from its Sharon AI GPU business, while setting aside IPO proceeds plus customer advance worth ₹1,500 crore as capital expenditure for FY27.