Larsen & Toubro (L&T) announced a landmark venture with NVIDIA to establish India’s largest sovereign, scalable GW-scale AI factory infrastructure, reinforcing India’s status as a global AI powerhouse. The partnership integrates L&T’s engineering with NVIDIA’s full AI stack to support high-density, next-generation workloads. This venture aims to serve domestic needs, hyperscalers, and cloud providers, positioning India as a strategic AI hub by February 18, 2026.
Strategic Alliance for Sovereign AI Infrastructure
Larsen & Toubro (L&T) has formalized a major proposed venture, in collaboration with NVIDIA, to build a gigawatt-scale AI factory infrastructure under the banner of the India AI Mission. The core objective is to establish a sovereign and scalable framework capable of powering India’s ambitions in digital and industrial transformation.
This partnership is designed to meet the demand from India’s enterprises, policymakers, industry leaders, and global off-takers seeking production-grade AI capacity anchored domestically.
Technical Integration and Scale
The factory model integrates L&T’s extensive engineering, infrastructure development, and execution capabilities with NVIDIA AI infrastructure. This includes deploying NVIDIA GPUs, CPUs, networking components, and the NVIDIA AI Enterprise software stack, supported by reference architectures.
The venture plans to deliver AI-ready capacity tailored for high-density, next-generation workloads, ensuring customers can expand sustainably within India. Specific deployment milestones cited include:
- Scaling the NVIDIA GPU cluster at L&T’s Chennai DC up to 30 MW capacity across its 300-acre campus.
- Developing a new 40 MW Datacenter in Mumbai, currently under execution.
Vision for India’s AI Future
The AI factory model is explicitly designed to move industries from experimentation to production-scale deployment across sectors like manufacturing, energy, financial services, and healthcare. It will enable the deployment of enterprise-grade AI capabilities with predictable performance, security, and rapid time-to-value.
Mr. S. N. Subrahmanyan, Chairman & Managing Director of L&T, stated that the investment establishes the secure, scalable, and sovereign infrastructure required to power critical services and deliver measurable economic impact.
Mr. Jensen Huang, Founder and CEO of NVIDIA, emphasized that L&T, an 88-year-old engineering leader, is crucial in laying the foundation for world-class AI infrastructure to realize Prime Minister Modi’s vision of democratizing AI access across the Global South.
Background Context
Larsen & Toubro is highlighted as a USD 30 billion Indian multinational specializing in EPC Projects, Hi-Tech Manufacturing, and Services. The company’s consistent focus on top-class quality has sustained its leadership across multiple geographies for eight decades.
Source: BSE
