The shares of Larsen & Toubro (L&T) gained in trade on February 18 after the company announced that it is teaming up with Nvidia to build India's largest Gigawatt-scale AI factory.
The shares of the engineering major rose nearly 1 percent to trade at Rs 4,310.5 apiece on Wednesday.
At the ongoing India AI Summit, L&T announced a proposed venture under the India AI Mission to build sovereign, scalable GW-scale NVIDIA AI factory infrastructure. The company said the venture aims to reinforce India’s position as a global AI powerhouse.
“This partnership is aimed at India’s enterprises, policymakers, industry leaders, global off takers, and analysts seeking production-grade AI capacity anchored in India’s digital and industrial transformation,” it said in an exchange filing.
L&T said that the partnership integrates its engineering, infrastructure development and execution, with Nvidia’s AI infrastructure including NVIDIA GPUs, CPUs, Networking, NVIDIA-accelerated storage platforms from leading providers, the NVIDIA AI Enterprise software stack, and reference architectures to enable rapid, secure AI adoption. “It will deploy AI-ready datacenter infrastructure, advanced computing platforms, and ecosystem enablement required to support large-scale AI workloads across priority sectors,” it added.
The company further said that the venture will support the creation of sovereign AI infrastructure that allows critical data, models, and AI workloads to be built, trained, and deployed within India, while remaining interoperable with global ecosystems.
L&T added that as part of the partnership, they will develop a gigawatt-scale AI data center factory, providing AI-ready capacity for high-density, next-generation workloads so customers can expand in India efficiently and sustainably.
“The venture will scale NVIDIA GPU cluster deployment at its Chennai DC up to 30 MW capacity in its 300 acres Gigawatt scalable campus & at the new 40 MW Datacenter in Mumbai currently under execution,” it added.
The proposed AI factory model will be able to deliver advanced AI services to global off takers, hyperscalers and India Inc, including manufacturing, infrastructure, energy, financial services, healthcare, and public services. “It is designed to provide standardized, enterprise-grade AI capabilities, enabling predictable performance, security, and time-to value for industrial and services use cases,” L&T said.
The factor will also enable L&T & its group companies to deploy live AI agents on Sovereign Cloud, fostering a self-sustaining innovation hub like LTTS’s Lights-Out Factory framework that leverages NVIDIA Omniverse libraries to transform industrial operations, LTM’s Blueverse and LTFS’s agentic AI deployment along with L&T’s own AI agents developed for internal consumption.
Speaking about the development, L&T Chairman & Managing Director SN Subrahmanyan said, "India’s enterprises are ready to move from AI pilots to production-scale deployment. The investment establishes the foundation — secure, scalable, and sovereign infrastructure — required to power manufacturing, energy, financial services, healthcare, and public services. With NVIDIA’s platforms and L&T’s execution strength, we are building infrastructure that will enable AI to deliver measurable economic impact.”
Nvidia CEO Jensen Huang meanwhile said, “AI is driving the largest infrastructure buildout in human history—everyone will use it, every company will be powered by it, and every country will build it. Prime Minister Modi has outlined a bold vision to democratize AI access across the Global South and position India as a global hub for digital infrastructure. Together with L&T—an 88-year-old engineering and nation-building leader—we are laying the foundation for world-class AI infrastructure that will power India’s growth and help realize the full vision of India AI.”
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