L&T and NVIDIA to Build India's Gigawatt-Scale AI Factory

L&T and NVIDIA Announce Landmark AI Partnership

Larsen & Toubro (L&T), a leading Indian multinational, announced a strategic partnership with global technology giant NVIDIA on February 18, 2026, at the India AI Summit. The collaboration aims to build India's largest gigawatt-scale AI factory, a significant step under the IndiaAI Mission to establish the nation as a global artificial intelligence powerhouse. This venture is set to create a sovereign AI infrastructure, enabling the development and deployment of large-scale AI models and workloads within India.

The partnership combines L&T's extensive experience in engineering, infrastructure development, and project execution with NVIDIA's complete AI technology stack. This includes NVIDIA's advanced GPUs, CPUs, networking solutions, and the NVIDIA AI Enterprise software suite. The goal is to provide a robust foundation for enterprises, policymakers, and global cloud providers looking to leverage production-grade AI capacity from a strategic hub in India.

Building a Sovereign AI Ecosystem

A core objective of this initiative is the creation of a sovereign AI infrastructure. This ensures that critical data, AI models, and complex workloads can be built, trained, and deployed within India's borders. While promoting data sovereignty, the infrastructure is designed to remain interoperable with global ecosystems, allowing for seamless collaboration and integration. This 'sovereign by-design' approach is intended to serve domestic requirements while also attracting global hyperscalers and enterprises seeking to establish a significant AI presence in India.

The venture will cater to a wide range of sectors, including manufacturing, infrastructure, energy, financial services, healthcare, and public services. By providing standardized, enterprise-grade AI capabilities, the project aims to help these industries transition from experimental AI pilots to full-scale production deployments, unlocking measurable economic value and operational efficiencies.

Infrastructure Expansion in Chennai and Mumbai

The project involves a substantial scaling of L&T's data center capabilities. The venture will expand the NVIDIA GPU cluster deployment at L&T's Chennai data center to a capacity of 30 MW. This facility is located on a 300-acre campus designed for future expansion to gigawatt-scale capacity. Additionally, a new 40 MW data center currently under execution in Mumbai will also be equipped with advanced AI infrastructure.

This 'AI factory' model is designed to provide high-density, next-generation capacity, allowing customers to expand their AI operations in India efficiently and sustainably. L&T currently has 32 MW of data center capacity, with 14 MW operational and another 18 MW expected to be commissioned by the end of the current fiscal year, supported by a capital expenditure of approximately ₹1,000 crore in the business.

Leadership Vision for India's AI Future

Leaders from both companies have expressed strong optimism about the partnership's potential. S N Subrahmanyan, Chairman and Managing Director of L&T, stated, “India’s enterprises are ready to move from AI pilots to production-scale deployment. The investment establishes the foundation — secure, scalable, and sovereign infrastructure — required to power manufacturing, energy, financial services, healthcare, and public services. With NVIDIA’s platforms and L&T’s execution strength, we are building infrastructure that will enable AI to deliver measurable economic impact.”

Jensen Huang, Founder and CEO of NVIDIA, echoed this sentiment, highlighting the global significance of AI. “AI is driving the largest infrastructure buildout in human history. Prime Minister Modi has outlined a bold vision to democratise AI access across the Global South and position India as a global hub for digital infrastructure. Together with L&T, we are laying the foundation for world-class AI infrastructure that will power India’s growth and help realise the full vision of India AI,” he said.

Market and Stock Performance

The announcement reflects a growing trend among Indian conglomerates like Tata, Reliance, and Adani, who are also investing heavily in data center and AI infrastructure. This collective push is aimed at cementing India's position as a leader in advanced digital technologies. Following the announcement, shares of Larsen & Toubro Limited closed at ₹4,310.00 on the NSE, marking an increase of 0.71%.

Fostering Innovation and Internal Growth

The partnership will also empower L&T and its group companies to deploy their own AI agents on the new Sovereign Cloud. This will create a self-sustaining innovation hub, leveraging technologies like LTTS’s Lights-Out Factory framework with NVIDIA Omniverse, LTM’s Blueverse, and LTFS’s agentic AI deployments. By advancing the national vision of “Making AI in India and Making AI Work for India,” this venture is poised to accelerate the country's digital transformation journey.