Larsen and Toubro has secured an order worth 100 billion to 150 billion rupees ($1.05 billion to $1.57 billion) to build an AI factory for Nvidia. The contract ranks among the largest AI infrastructure construction deals announced in India this year.
India's Larsen and Toubro has secured an order worth 100 billion to 150 billion rupees ($1.05 billion to $1.57 billion) to build an AI factory for Nvidia, the engineering conglomerate said Thursday.
The contract, disclosed in a company statement, covers construction of the AI infrastructure facility for the U.S. chipmaker. L&T did not disclose the facility's location, capacity in megawatts, or expected completion timeline.
At current exchange rates of 95.36 rupees per dollar, the order ranks among the largest AI infrastructure construction deals announced in India this year. The deal follows Nvidia's recent backing of Firebird's 300-megawatt AI data centre in Hrazdan, Armenia, which hosts more than 70,000 Nvidia Rubin and Blackwell GPUs on Dell PowerEdge servers and was delivered in six months. That facility, built on Nvidia's AI factory platform, is the largest in the CIS region and has already signed Perplexity AI as a customer.
For L&T, the contract strengthens its position as a builder of AI infrastructure in India's fast-growing data centre market. The Mumbai-based conglomerate, one of India's largest engineering and construction firms, has been expanding its technology infrastructure portfolio as demand for AI compute capacity surges.
India's AI data centre buildout is expanding beyond traditional technology hubs. Black Box, an Indian IT services firm, secured a $131 million data centre order from a U.S. hyperscaler this week, while multiple operators are pursuing projects across the country. The Indian government has been courting data centre investment as part of its broader digital infrastructure push, with AI-specific facilities drawing particular interest from global chipmakers and cloud providers.
For Nvidia, the deal extends its AI factory model into India, following similar partnerships in Armenia and other markets. The company's AI factory platform combines reference architecture, GPUs, networking and AI software into a turnkey deployment model that allows partners to rapidly stand up AI compute capacity. Nvidia has been pushing this model as demand for AI infrastructure outpaces traditional data centre construction timelines.
The contract also reflects the broader shift in AI capital expenditure from hyperscalers to diversified infrastructure builders. While companies like Microsoft, Amazon and Google have historically built their own data centres, the AI factory model enables third-party construction firms to capture a larger share of the buildout. L&T's win shows Indian engineering firms are increasingly competing for this work alongside global players.
Nvidia shares have been supported by sustained AI capital expenditure across the industry, and this deal reinforces the company's strategy of expanding AI infrastructure into new geographies. For investors, the order highlights the growing intersection of traditional construction and AI infrastructure, a trend that could benefit engineering firms with data centre capabilities.
This article is for informational purposes only and does not constitute investment advice.
