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L&T Teams with NVIDIA to Build India’s Largest Gigawatt-Scale AI Factory

PSU Connect
Breaking: L&T teams up with NVIDIA to establish a Gigawatt-scale AI factory in India. This sovereign-by-design infrastructure targets global hyperscalers and domestic enterprises. Read the full details of the Chennai and Mumbai deployments.
L&T Teams with NVIDIA to Build India’s Largest Gigawatt-Scale AI Factory

MUMBAI | February 18, 2026: In a landmark move at the India AI Summit, Larsen & Toubro (L&T) has officially announced a strategic venture to build a sovereign, Gigawatt-scale NVIDIA AI factory. This massive infrastructure project aims to cement India’s position as a global AI powerhouse, serving hyperscalers, cloud providers, and domestic enterprises.

1. The Core Vision: Sovereign by Design

The venture is a direct response to the IndiaAI Mission. By integrating L&T’s engineering expertise with NVIDIA’s advanced AI infrastructure, the partnership will create a "sovereign fabric." This ensures that critical national data and AI models are trained and deployed within India’s borders while remaining globally interoperable.

2. Infrastructure & Capacity Breakdown

The project focuses on building AI-ready data centers capable of handling high-density, next-generation workloads.

  • Chennai Deployment: Scaling NVIDIA GPU clusters up to 30 MW within L&T’s 300-acre gigawatt scalable campus.

  • Mumbai Deployment: A new 40 MW data center currently under execution to serve India’s financial and commercial hub.

  • The Technology Stack: The factory will utilize NVIDIA GPUs, CPUs, Networking, and the NVIDIA AI Enterprise software stack to enable rapid AI adoption.

 

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3. Sector-Wide Impact: Beyond Infrastructure

L&T plans to move AI from experimentation to production-scale deployment across multiple sectors:

  • Manufacturing: Live AI agents for "Lights-Out" factories.

  • Finance: Agentic AI deployment through L&T Finance (LTFS).

  • Engineering: Utilizing NVIDIA Omniverse to create digital twins of massive EPC projects.

4. Leadership Voice

"India’s enterprises are ready to move from AI pilots to production-scale deployment. With NVIDIA’s platforms and L&T’s execution strength, we are building infrastructure that will enable AI to deliver measurable economic impact." — Mr. S. N. Subrahmanyan, Chairman & Managing Director, L&T

"AI is driving the largest infrastructure buildout in human history... Together with L&T, we are laying the foundation for world-class AI infrastructure that will power India’s growth." — Mr. Jensen Huang, Founder and CEO, NVIDIA

 

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Investor & Reader Engagement: What to Watch

This announcement is a game-changer for L&T (NSE: LT). Investors should watch for the execution timelines of the Mumbai data center and the first "off-take" agreements from global hyperscalers. This move effectively transitions L&T from a traditional construction giant into a high-tech infrastructure service provider.

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