India’s Largest AI Factory Takes Shape with L&T NVIDIA

In a major announcement at the India AI Impact Summit 2026, engineering giant Larsen and Toubro revealed a strategic partnership with global technology leader NVIDIA to build what is being described as India’s largest gigawatt scale AI factory. The project will operate under the IndiaAI Mission and represents a significant step in strengthening the country’s artificial intelligence infrastructure.

The collaboration brings together L&T’s deep expertise in infrastructure and engineering with NVIDIA’s advanced AI computing technology. By combining large scale data centre development with cutting edge GPUs, networking systems, and AI software platforms, the partnership aims to create a powerful ecosystem capable of supporting next generation AI workloads.

As part of the plan, L&T will expand its data centre footprint in India. Its Chennai facility will scale up GPU capacity to 30 megawatts, while a new data centre in Mumbai is expected to add 40 megawatts of AI ready infrastructure. The goal is to enable high performance computing within India while ensuring that critical AI data and workloads remain domestically managed. This approach reflects a strong push toward sovereign AI infrastructure, giving India greater control over its digital future.

The AI factory will not only support Indian enterprises but also cater to global customers, cloud service providers, and industrial companies looking for large scale AI computing capacity. By developing enterprise grade infrastructure at home, India hopes to reduce dependence on overseas data centres and accelerate AI adoption across sectors such as healthcare, manufacturing, energy, finance, and governance.

The announcement has also boosted investor confidence, with markets responding positively to L&T’s growing AI ambitions. Beyond immediate financial gains, the initiative signals India’s long term vision to emerge as a global AI hub.

Overall, the L&T and NVIDIA partnership marks a transformative moment for India’s technology landscape, potentially positioning the country as a major force in global AI manufacturing and computing in the coming years.

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