Larsen & Toubro has officially entered a strategic venture with Nvidia to develop India’s first sovereign, gigawatt-scale AI factory. Announced during the India AI Impact Summit in February 2026, this collaboration integrates L&T’s heavy engineering and data center expertise with Nvidia’s full-stack AI computing platform. The project is a cornerstone of the national IndiaAI Mission, which recently secured over 10,300 crore INR in government backing to democratize high-end compute access. The infrastructure footprint is massive. L&T is scaling its Chennai campus to a 30 MW GPU cluster within a 300-acre site, while simultaneously executing a new 40 MW data center in Mumbai. These facilities are designed to be "sovereign by design," ensuring that critical data and AI workloads for Indian enterprises remain within national borders while maintaining global interoperability. Market sentiment reflects the scale of this ambition. As of February 19, 2026, L&T’s stock is trading near record highs at 4,326 INR, reflecting a 34% gain over the past year. The company’s market capitalization has crossed 5.95 lakh crore INR, buoyed by a consolidated order book that has reached an unprecedented 7.33 lakh crore INR. The partnership is timed to meet a surge in domestic demand. India’s total AI investment is projected to scale significantly from its current 1.2 billion USD base, with the government aiming to deploy over 38,000 GPUs to support startups and researchers. By providing "production-grade" AI capacity, L&T and Nvidia are shifting the market focus from experimental AI pilots to large-scale industrial deployment. Beyond infrastructure, the venture enables L&T group companies—including L&T Technology Services and LTIMindtree—to deploy live AI agents on a sovereign cloud. These agents will power "Lights-Out" factories and autonomous industrial operations, leveraging Nvidia’s Omniverse libraries to create digital twins for manufacturing, energy, and healthcare sectors. This move positions India as a global hub for digital infrastructure. With the Indian IT sector projected to reach 350 billion USD this year, the L&T-Nvidia factory provides the foundational compute needed to transform India from a consumer of AI into a global producer of intelligence-led services.