New Delhi: Engineering and infrastructure major Larsen & Toubro (L&T) on Tuesday announced a strategic partnership with NVIDIA Corporation to develop India’s largest gigawatt-scale AI factory, reinforcing the country’s ambition to emerge as a global AI powerhouse.
The proposed venture, unveiled at the India AI Summit, will build sovereign, scalable AI infrastructure aligned with the IndiaAI Mission. It aims to create production-grade AI capacity to serve domestic enterprises, global hyperscalers, cloud providers and industrial players seeking large-scale AI workloads from India.
Sovereign AI Infrastructure
The partnership integrates L&T’s engineering, procurement and construction (EPC) expertise with NVIDIA’s full-stack AI infrastructure — including GPUs, CPUs, networking solutions, accelerated storage platforms and the NVIDIA AI Enterprise software stack.
The AI factory model is designed to enable large-scale deployment of AI-ready data centres capable of supporting high-density, next-generation workloads. The infrastructure will allow critical data, models and AI workloads to be built, trained and deployed within India while remaining interoperable with global ecosystems.
Chennai, Mumbai as Anchor Hubs
The venture plans to scale NVIDIA GPU cluster deployment at L&T’s Chennai data centre up to 30 MW capacity within a 300-acre, gigawatt-scalable campus. Additionally, a new 40 MW data centre in Mumbai — currently under execution — will be integrated into the AI infrastructure rollout.
The initiative aims to deliver standardized, enterprise-grade AI capabilities across sectors including manufacturing, infrastructure, energy, financial services, healthcare and public services, enabling companies to transition from pilot projects to production-scale AI implementation.
Strategic Push for AI-at-Scale
S. N. Subrahmanyan, Chairman and Managing Director of L&T, said the investment lays the foundation for secure and scalable infrastructure required to unlock measurable economic impact from AI adoption.
NVIDIA Founder and CEO Jensen Huang highlighted that AI represents one of the largest infrastructure buildouts globally and aligns with India’s broader vision to democratise AI access and strengthen digital infrastructure.
The AI factory will also support deployment of AI agents across L&T’s group companies and sovereign cloud platforms, fostering industrial automation and digital transformation initiatives.
With global tech giants racing to expand AI computing capacity, India has emerged as a key geography given its digital ecosystem, talent base and policy backing. The L&T–NVIDIA collaboration signals a shift from experimental AI projects to structured, capital-intensive AI infrastructure development at national scale.
For L&T, traditionally known for EPC and industrial projects, the move marks a strategic pivot into digital infrastructure and high-performance computing — positioning the conglomerate at the intersection of engineering and advanced AI capability.