Larsen & Toubro (L&T) has announced plans to set up a gigawatt-scale AI factory under the IndiaAI Mission. The announcement was made during the India AI Summit. Through this project, L&T aims to help strengthen India’s position as a major global hub for artificial intelligence. The AI factory is expected to provide high-performance AI infrastructure that is built and operated within India, supporting enterprises, policymakers, industry leaders, and global partners who require reliable and large-scale AI capacity.

This major initiative will combine L&T’s strong background in engineering, construction, and infrastructure development with Nvidia’s advanced AI technology. Nvidia will contribute key components such as GPUs, CPUs, networking systems, AI-supported storage, enterprise-level software stacks, and reference architectures. Together, these tools will allow the project to support large AI workloads in several important sectors. The focus will be on building AI-ready data centres, powerful computing systems, and tools that can help create a wider AI ecosystem.

The project is closely aligned with the IndiaAI Mission, which focuses on developing sovereign AI infrastructure. This means that important AI models, data, and workloads can be created, trained, and deployed inside India, without depending fully on foreign systems. At the same time, the infrastructure will remain compatible with global standards so that international companies and platforms can also operate smoothly. The AI factory is expected to provide high-density computing power that can serve Indian industries as well as global hyperscalers, cloud providers, and large enterprises that want scalable AI operations from India.

As part of the expansion, L&T will scale up Nvidia GPU clusters at its Chennai data centre. The facility is located on a 300-acre campus and is planned to reach a capacity of 30 MW. Along with this, L&T is also developing a new 40 MW data centre facility in Mumbai. These data centres will support enterprise-level AI services and will allow industries to move beyond small pilot projects and adopt AI at full production scale.

The AI factory is designed to support a wide range of sectors such as manufacturing, energy, financial services, healthcare, and public services. By providing strong computing infrastructure, the project aims to help businesses build AI applications that can run on a large scale and deliver real results. The plan is to create a system that can handle demanding AI tasks such as training models, deploying AI services, and running high-speed AI operations for industries.

L&T also plans to introduce AI agents on sovereign cloud platforms. These AI agents are expected to support innovation and create self-sustaining AI hubs across industries. The company highlighted that the project will connect with similar initiatives already developed within L&T’s group companies, such as LTTS’s Lights-Out Factory, LTM’s Blueverse, and LTFS’s agentic AI deployments. These platforms will use Nvidia Omniverse libraries along with L&T’s in-house AI agents to improve industrial operations and streamline internal workflows.

According to L&T’s Chairman and Managing Director, the investment will offer secure, scalable, and sovereign AI infrastructure. This is expected to create a measurable economic impact across multiple sectors. Nvidia CEO Jensen Huang also shared his view that this partnership will support India’s goal of expanding AI access and making AI available to more people and industries. He added that this collaboration can help India become a global centre for digital infrastructure.

Overall, the project is being presented as a national-scale AI factory that is sovereign by design and built for accelerated computing. It will not only meet India’s growing demand for AI capacity but also serve international AI requirements. The project is expected to boost AI adoption across industries, increase innovation, and create new opportunities for economic growth. It also supports India’s larger vision of “Making AI in India and Making AI Work for India,” helping the country build future-ready technology infrastructure.