L&T and Nvidia Announce Joint Venture to Build AI Factory in India
In a landmark move, Larsen & Toubro (L&T) and Nvidia have revealed plans to form a joint venture aimed at constructing a large-scale artificial intelligence factory in India. This ambitious project involves investments totaling billions of dollars, positioning L&T alongside other major Indian conglomerates such as Adani, Tata, and Reliance Industries, all of whom are making significant capital commitments to data centre and AI infrastructure initiatives.
Strategic Push for Global AI Leadership
These substantial investments are part of a broader national effort to establish India as a global leader in artificial intelligence and advanced digital infrastructure. L&T currently operates AI-ready, green energy–powered data centres in Mumbai and Chennai, with plans to expand by adding three more facilities in Bengaluru, Panvel, and Mahape—the latter two located in Navi Mumbai.
The proposed partnership leverages L&T's extensive expertise in engineering and large-scale infrastructure development, combined with Nvidia's cutting-edge AI technologies. This includes Nvidia's powerful chips, such as GPUs and CPUs, along with its networking systems, storage platforms, and enterprise software. Together, the companies aim to build, train, and run AI models and handle large data workloads within India, while ensuring the systems remain connected and compatible with global technology ecosystems.
Expanding Infrastructure and Capacity
As part of the strategic plan, Nvidia's GPU clusters at L&T's Chennai data centre will be expanded to a 30 MW capacity on a 300-acre campus, designed to scale up to gigawatt levels. Additionally, a new 40 MW data centre is currently under development in Mumbai, further bolstering the infrastructure.
Nvidia founder Jensen Huang emphasized that AI is driving one of the most significant infrastructure expansions in history. He stated that every person, company, and country will increasingly rely on AI in the future. Huang added that, in collaboration with L&T—an 88-year-old engineering leader—they are laying the foundation for world-class AI infrastructure to power India's growth.
Economic Impact and Sectoral Support
Industry estimates suggest that building a 250 MW data centre typically requires around $10 billion in investment, highlighting the scale of this venture. L&T chairman and managing director S N Subrahmanyan noted that by integrating Nvidia's technology with L&T's execution strength, they are creating infrastructure that will enable AI to deliver measurable economic impact.
He further explained that this investment will establish secure, scalable, and sovereign digital infrastructure to support key sectors, including manufacturing, energy, finance, healthcare, and public services. The goal is not only to serve Indian companies but also to attract global cloud providers and businesses looking to utilize India as a strategic AI hub.
