L&T, NVIDIA Partner to Build Gigawatt-Scale Sovereign AI Factory

Larsen & Toubro and NVIDIA announce a gigawatt-scale sovereign AI factory under India’s AI Mission, with facilities in Chennai and Mumbai.

India’s ambition to own its AI future just got a major structural boost. Larsen & Toubro (L&T), one of India’s largest engineering and infrastructure conglomerates, has announced a landmark venture with chipmaker NVIDIA to build gigawatt-scale sovereign AI factory infrastructure under the IndiaAI Mission, marking one of the most consequential AI infrastructure announcements to emerge from the India AI Impact Summit 2026.

The initiative is designed to integrate L&T’s engineering and project execution capability with NVIDIA’s complete AI hardware and software stack, including GPUs, CPUs, networking, and the NVIDIA AI Enterprise software suite. The goal is to build what both companies describe as AI factories at national scale: infrastructure that is sovereign by design, meaning all data, AI models, and workloads are built, trained, and deployed within India’s borders, while remaining interoperable with global AI systems.

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The venture will scale an NVIDIA GPU cluster at L&T’s existing Vyoma Data Centre in Chennai to 30 megawatts of capacity, situated on a 300-acre gigawatt-scalable campus. Simultaneously, a new 40-megawatt data centre in Mumbai is already under construction. Together, these two facilities will form the initial foundation of what is envisioned as a nationwide sovereign AI cloud capable of serving domestic enterprises, government institutions, global hyperscalers, and cloud service providers.

S. N. Subrahmanyan, Chairman and Managing Director of L&T, said India’s enterprises are ready to move beyond AI pilots. The investment establishes the foundation, secure, scalable, and sovereign infrastructure required to power manufacturing, energy, financial services, healthcare, and public services, he said. Jensen Huang, Founder and CEO of NVIDIA, added that AI is driving the largest infrastructure buildout in human history and that every country will need to build it.

Beyond raw computing infrastructure, the venture will enable L&T’s group companies including L&T Technology Services, L&T Finance, and L&T Manufacturing to deploy live AI agents on the sovereign cloud. This includes frameworks like the Lights-Out Factory model built on NVIDIA Omniverse libraries, which allows industrial facilities to be digitally twinned and operated with minimal human intervention.

The announcement positions India not merely as a consumer of AI services, but as a builder and exporter of AI compute capacity. Under the IndiaAI Mission a government programme with over $1 billion allocated to boost national AI infrastructure India is aiming to become a global hub for AI development with the vision of Making AI in India and Making AI Work for India.