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Larsen & Turbo (L&T) has announced a major expansion of its data center business in India, planning to invest around Rs 10,000 crore. The company will make this investment as part of its “Goal 2031” vision, which aims to develop approximately 200 MW of data center capacity across the country. This capacity will be installed primarily in Visakhapatnam, Bengaluru and Mumbai.

The company has launched the “Larsen & Toubro Vyoma” brand, renaming its data center business. L&T says the project is being designed keeping in mind global hyperscalers, sovereign private cloud customers and emerging quantum computing needs.

The company has already commissioned a 12 MW capacity data center in Kanchipuram, Tamil Nadu, while an additional 6 MW capacity is due to be completed soon. This will take the total available capacity to 30 MW.

According to L&T, these data centers are being designed to handle high-performance computing, advanced data storage and AI based workloads. The company is particularly emphasizing on GPU-enabled infrastructure to meet the growing needs of AI and quantum computing in the future.

Company President and Chief Financial Officer R. Shankar Raman said that the data centers will use state-of-the-art GPU technology, which is extremely important for deep computing and AI based systems.

L&T’s business model will be based on a ‘build-to-suit’ arrangement, in which infrastructure will be developed in collaboration with server chip companies, GPU providers and end customers. In this direction, the company has also signed an agreement (MoU) with Nvidia.

The company says the partnership with Nvidia will help it attract large hyperscale customers and adapt its data center infrastructure to AI and advanced computing needs.

L&T has clarified that this expansion will be done in a phased manner. The company is currently focusing on market preparation, strengthening the supply chain and developing infrastructure. The return on investment is expected to be between 13 to 14 percent.

R. Shankar Raman said that the real benefits of these projects can be seen between 2031 to 2036. He said that the success of data centers will depend on how quickly customers and workloads are added to them.

According to experts, this investment is considered a major strategic entry of L&T in India’s rapidly growing digital infrastructure market. Amidst the increasing demand for AI, cloud computing, digital services and quantum technology, the data center sector may become one of the most important tech industries in the country in the coming years.

L&T’s “Vyoma” project is also considered an important step towards strengthening India’s digital self-reliance and technological capability. The company aims not only for business expansion but also to contribute to making India a globally competitive data infrastructure hub.

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