Engineering major Larsen & Toubro revealed a proposed collaboration with NVIDIA on February 18. The initiative falls under the IndiaAI Mission and focuses on building sovereign, scalable gigawatt-scale AI factory infrastructure. Moreover, leaders unveiled the plan during the five-day India AI Impact Summit 2026.
According to the company statement, the collaboration targets enterprises, policymakers, industry leaders, global off-takers and analysts. Specifically, it aims to deliver production-grade AI capacity rooted in India’s digital and industrial transformation.
Combining Infrastructure Expertise with Advanced AI
The proposal blends L&T’s engineering development capabilities with NVIDIA’s AI platforms, including GPUs, CPUs and networking systems. Furthermore, the objective aligns directly with the IndiaAI Mission. In addition, the initiative will enable critical datasets, models and workloads to develop, train and operate within India. At the same time, the system will remain compatible with global ecosystems.
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Building a Gigawatt-Scale AI Hub
The project seeks to serve domestic industries while attracting global hyperscalers and cloud providers. Consequently, India could emerge as a strategic AI deployment hub. The venture plans to establish a gigawatt-scale AI data centre factory. Therefore, customers can support high-density, next-generation workloads efficiently and sustainably.
Additionally, planners intend to expand NVIDIA GPU clusters at the Chennai data centre up to 30 MW capacity. This facility sits within a 300-acre, gigawatt-scalable campus. Meanwhile, execution continues on a new 40 MW datacentre in Mumbai.
Enabling Production-Scale AI Services
Once operational, the AI factory will deliver advanced services to global off-takers, hyperscalers and India Inc. Key sectors include manufacturing, infrastructure, energy, financial services, healthcare and public services. As a result, enterprises can transition from experimentation to full production deployment.
Moreover, L&T and its Group entities will deploy live AI agents on a Sovereign Cloud. The framework includes LTTS’s Lights-Out Factory model powered by NVIDIA Omniverse libraries. It also covers LTM’s Blueverse, LTFS’s agentic AI deployment and internally developed AI agents.
Leadership Perspective on Growth
Chairman and Managing Director S N Subrahmanyan stated that Indian enterprises stand ready to move beyond pilot projects. He emphasised that the investment builds secure and scalable sovereign infrastructure. Consequently, manufacturing, energy, healthcare and financial services can harness measurable economic gains.
Meanwhile, NVIDIA Founder and CEO Jensen Huang highlighted AI’s transformative scale. He stated that every company and nation will build and use AI. He referenced Prime Minister Modi’s vision to democratise AI access across the Global South. Finally, he noted that this partnership will create world-class AI infrastructure to drive India’s growth and fulfil the broader India AI vision.
