L&T and NVIDIA Partner to Build India's Sovereign AI Factory

Introduction to a Landmark Partnership

In a significant move to bolster India's technological capabilities, Larsen & Toubro (L&T) announced a strategic partnership with NVIDIA on February 18, 2026, at the India AI Summit. The proposed venture aims to build a sovereign, gigawatt-scale AI factory infrastructure, aligning with the government's IndiaAI Mission. This collaboration is set to reinforce India's standing as a global powerhouse in artificial intelligence by creating production-grade AI capacity for a wide range of users, including domestic enterprises, policymakers, and global technology consumers.

A Strategic Alliance for National AI Infrastructure

The partnership combines L&T's extensive experience in engineering, infrastructure development, and project execution with NVIDIA's leadership in AI computing. The venture will leverage NVIDIA's complete AI technology stack, which includes its advanced GPUs, CPUs, networking solutions, and the NVIDIA AI Enterprise software suite. This integration is designed to facilitate the rapid and secure adoption of AI across various sectors by providing AI-ready datacenter infrastructure and advanced computing platforms. The goal is to create an ecosystem that can support large-scale AI workloads, moving Indian industries from a phase of experimentation to full-scale production deployment.

The Vision for a Sovereign AI Ecosystem

A core objective of this initiative is the creation of a sovereign AI infrastructure. This ensures that critical data, complex AI models, and intensive workloads can be developed, trained, and deployed within India's geographical boundaries. This approach enhances data security and national control over critical digital assets. While sovereign by design, the infrastructure will remain interoperable with global ecosystems, allowing it to serve domestic needs as well as global hyperscalers, cloud providers, and international enterprises that view India as a strategic hub for AI capacity. This dual focus supports the national vision of "Making AI in India and Making AI Work for India."

Scaling Up Datacenter Capacity in Key Locations

The project involves a substantial expansion of L&T's datacenter capabilities. The plan includes scaling the NVIDIA GPU cluster deployment at L&T's Chennai datacenter campus to a capacity of 30 MW. This facility is situated on a 300-acre campus designed for future expansion to gigawatt scale. In addition, a new 40 MW datacenter is currently under execution in Mumbai, which will also house advanced AI infrastructure. These facilities will provide the high-density, next-generation computing power required for demanding AI workloads, enabling customers to expand their operations in India efficiently and sustainably.

Key Project Details at a Glance

Perspectives from Industry Leaders

S. N. Subrahmanyan, Chairman & Managing Director of L&T, highlighted the readiness of Indian enterprises to adopt AI on a larger scale. He stated, "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, emphasized the global significance of the project. He remarked, "AI is driving the largest infrastructure buildout in human history. Prime Minister Modi has outlined a bold vision to democratize AI access... Together with L&T, we are laying the foundation for world-class AI infrastructure that will power India’s growth and help realize the full vision of India AI."

Market Impact and Industry Implications

The announcement signals a pivotal shift for Indian industries, providing the foundational infrastructure needed to transition from small AI pilot projects to production-scale deployments. This will directly benefit sectors critical to India's economy, including manufacturing, infrastructure, and financial services. The market responded positively to the news, with shares of Larsen & Toubro Limited closing at ₹4,310.00 on the NSE, marking a 0.71% increase on the day of the announcement. The venture is expected to attract global off-takers and hyperscalers, further integrating India into the global AI supply chain.

Fostering a Self-Sustaining Innovation Hub

This partnership will also empower L&T and its group companies, such as LTTS and LTM, to deploy their own AI agents on the sovereign cloud. This creates a self-sustaining innovation hub, enabling the development and application of proprietary AI solutions. Examples include LTTS’s Lights-Out Factory framework, which uses NVIDIA Omniverse to transform industrial operations, and other agentic AI deployments for internal use. This internal adoption will serve as a model for other enterprises, demonstrating the practical benefits and capabilities of the new infrastructure.

Conclusion and Future Outlook

The collaboration between L&T and NVIDIA represents a cornerstone in India's journey toward becoming a leader in artificial intelligence. By establishing a sovereign, national-scale AI factory, the venture directly supports the IndiaAI Mission and provides the critical infrastructure needed for widespread AI adoption. As the datacenter projects in Chennai and Mumbai progress, this partnership is poised to unlock significant economic value and drive innovation across India's most vital industries, firmly establishing the nation's capabilities in the global AI landscape.