L&T, Nvidia join hands to build mega AI factory in India

MUMBAI: Larsen & Toubro (L&T) and Nvidia plan to form a joint venture to build a large-scale AI factory in India, involving billions of dollars in investments. The move places L&T among a growing group of Indian conglomerates, including Adani, Tata, and Reliance Industries, that are committing substantial capital to data centre and AI infrastructure projects. These investments are part of a broader push to position India as a global leader in artificial intelligence and advanced digital infrastructure.

L&T already operates AI-ready, green energy–powered data centres in Mumbai and Chennai, and plans to add three more in Bengaluru, Panvel, and Mahape (the latter two located in Navi Mumbai).

The proposed partnership combines L&T’s strengths in engineering and large-scale infrastructure development with Nvidia’s advanced AI technologies, including its powerful chips (GPUs, CPUs), networking systems, storage platforms, and enterprise software.

Together, they aim to build, train, and run AI models and large data workloads within India. At the same time, the systems will stay connected and compatible with global technology ecosystems. The goal is not only to serve Indian companies but also global cloud providers and businesses that want to use India as a strategic AI hub.

As part of the plan, Nvidia’s GPU clusters at L&T’s Chennai data centre will be expanded to 30 MW capacity on a 300-acre campus designed to scale up to gigawatt levels. In Mumbai, a new 40 MW data centre is currently under development.

Nvidia founder Jensen Huang said AI is driving one of the biggest infrastructure expansions in history. According to him, every person, every company and country will rely on AI in the future. He added that, together with L&T — an 88-year-old engineering leader — “we are laying the foundation for world-class AI infrastructure to power India’s growth.”

Industry estimates suggest that building a 250 MW data centre typically requires around $10 billion in investment.

L&T chairman and managing director S N Subrahmanyan said that by combining Nvidia’s technology with L&T’s execution strength, they are building infrastructure that will enable AI to deliver measurable economic impact. He added that the investment will create secure, scalable, and sovereign digital infrastructure to support key sectors such as manufacturing, energy, finance, healthcare, and public services.