Larsen & Toubro has committed ₹10,000 crore towards its data centre business under the Lakshya 2031 strategy, with the objective of creating approximately 200 megawatts of capacity distributed across Vizag, Bangalore, and Mumbai.
This initiative is designed to cater to global hyperscalers, sovereign private cloud clients, and emerging quantum computing requirements. The company’s approach is to scale the business through hyperscale alliances, AI-ready infrastructure, and sovereign cloud offerings, while remaining flexible on the pace and structure of investments depending on partnership models and market conditions.
The business has been rebranded as Larsen & Toubro Vyoma, which has already commissioned 12 MW of capacity at Kanchipuram, Tamil Nadu, with an additional 6 MW nearing completion. This brings the total available capacity to 30 MW, positioning Vyoma as a platform for hyperscale expansion. Another 30 MW facility is under construction at Mahape in Navi Mumbai.
These facilities are being designed to support high-performance computing workloads and advanced data storage, with a strong emphasis on GPU-enabled infrastructure to ensure AI readiness. R. Shankar Raman, President and Chief Financial Officer of L&T, emphasised that the company’s data centres will be equipped with GPUs to enable intensive computing capabilities, which is critical for AI and quantum workloads.
The company’s model is based on a build-to-suit arrangement, involving close collaboration with server chip suppliers, GPU providers, and end users. A memorandum of understanding with Nvidia has been signed to ensure that once L&T commits to creating capacity of interest to large organisations, it can leverage Nvidia’s ecosystem to attract hyperscale clients.
This partnership is intended to align infrastructure development with the requirements of advanced computing players, thereby ensuring demand generation alongside capacity creation.
The long-term plan is modular, with capacity being added in phases across the three cities. The company is currently focused on curating the market, developing its supply chain, and building facilities from the ground up.
Returns are expected to be in the range of 13–14 percent at optimal levels, driven by a mix of hyperscaler and non-hyperscaler clients. Raman noted that the returns will depend on how effectively the data centres are populated, and that the full benefits of these investments are likely to be realised in the 2031–2036 timeframe.
The ₹10,000 crore investment reflects L&T’s ambition to position itself as a major player in India’s digital infrastructure ecosystem, complementing national goals of self-reliance in critical technology. By aligning with global hyperscalers and advanced computing firms, the company aims to create a sovereign yet globally competitive data centre platform.
The strategy also dovetails with India’s broader digital public infrastructure roadmap, which envisions exponential growth in AI, cloud, and quantum computing capabilities by 2047. L&T’s Vyoma initiative is therefore not only a commercial venture but also a strategic move to embed itself in the next wave of technological transformation.
Agencies
