India’s AI Data Centre Boom: L&T Secures Up to $1.57 Billion AI Infrastructure Deal from Together AI

India’s AI infrastructure sector is gaining significant momentum as Larsen & Toubro (L&T) secures an order worth up to $1.57 billion from US-based AI cloud company Together AI. The project marks a major step in India’s ambition to become a global hub for artificial intelligence and high-performance computing.

L&T to Build Major AI Computing Facility in Chennai

The project will be developed at L&T’s AI-ready data centre campus in Chennai, Tamil Nadu, and is expected to feature approximately 10,000 NVIDIA B300 GPUs.

India AI Data Centre Boom

The facility will be designed to support demanding AI workloads, including model training, fine-tuning and inference. Such large-scale GPU infrastructure is becoming increasingly important as businesses worldwide accelerate their adoption of generative AI and advanced machine learning.

The contract, valued between ₹10,000 crore and ₹15,000 crore, represents one of the most significant AI infrastructure projects announced in India.

Chennai Emerging as an AI Hub

Chennai is rapidly strengthening its position as a major data centre destination in India. Its power infrastructure, connectivity and access to international submarine cable networks make it an attractive location for large-scale computing facilities.

L&T is developing its Chennai campus with future expansion in mind, reflecting the growing demand for AI-focused data centres.

Unlike conventional data centres, AI facilities require much higher computing density, advanced cooling systems and substantial electricity capacity to operate thousands of GPUs efficiently.

Why the Together AI Deal Matters

The agreement highlights the growing role of India in the global AI infrastructure ecosystem.

For Together AI, the Chennai facility provides access to significant computing capacity. For L&T, the project strengthens its position in the rapidly expanding digital infrastructure market.

The development also reflects a broader trend: AI investment is moving beyond software and into physical infrastructure such as data centres, GPUs, power systems and high-speed networks.

India’s Growing AI Opportunity

India already has a large technology and IT services ecosystem, but the country is increasingly looking to build capabilities across the entire AI value chain.

Large AI data centres can support startups, enterprises, research institutions and global technology companies that require powerful computing resources.

The expansion of AI infrastructure could also create opportunities for companies involved in construction, energy, networking, cloud computing and data centre operations.

The Road Ahead

The L&T–Together AI project could become an important milestone in India’s AI journey. As demand for generative AI and high-performance computing continues to grow, more investments in GPU-based data centres are expected.

For L&T, the deal represents a move deeper into technology infrastructure. For India, it reinforces the country’s ambitions to become a major global destination for AI computing.

The AI race is no longer only about developing powerful models. It is also about building the infrastructure capable of running them—and India is increasingly positioning itself at the centre of that race.