Larsen & Toubro has secured a mega order worth up to ₹15,000 crore from U.S.-based Together AI to build an advanced AI data centre in Chennai. The project, marking the infrastructure major's entry into the 'AI factory' business, involves deploying 10,000 NVIDIA B300 chips. The stock rose by over 1% following the announcement, reflecting market interest in the company's expansion into digital infrastructure.
Larsen & Toubro (L&T) announced on Thursday that it has won a significant contract from U.S.-based cloud platform Together AI. The deal, valued between ₹10,000 crore and ₹15,000 crore, marks a strategic entry for the infrastructure major into the 'AI factory' sector. The project will be executed through its AI infrastructure subsidiary, LTN Compute.
The data centre will be located at the company’s Vyoma.AI facility in Chennai. According to the company, the facility is designed to host 10,000 of NVIDIA’s B300 chips. These processors are specialized for high-intensity artificial intelligence tasks, such as model training and fine-tuning. The site is planned as a gigawatt-scale infrastructure project, with an initial phase targeting 250 MW of capacity. Following the announcement, L&T shares traded 1% to 1.4% higher during the day.
This order signals a shift in L&T’s portfolio, as the company moves beyond traditional engineering and construction into high-tech digital infrastructure. By hosting and managing the infrastructure for a cloud platform like Together AI, L&T is positioning itself to capture demand in the growing market for AI computing power. The 'AI factory' model focuses on providing the physical and technological environment necessary for the compute-heavy needs of modern AI applications.
For investors, this project introduces a new set of dynamics to monitor. While the order size is large, the business model carries different risks compared to standard construction projects. A primary monitorable will be execution risk, as building large-scale, high-density AI data centres requires precise technical management and the timely procurement of specialized hardware. The project's success is notably dependent on the global supply chain for high-end components, specifically the NVIDIA GPUs mentioned.
Additionally, investors may track whether the company can maintain healthy margins in this new segment as it scales up capacity. Capital-intensive projects of this nature require significant upfront investment, and the speed at which the company can commission subsequent phases of the gigawatt-scale roadmap will be a key indicator of operational efficiency. The market will likely observe how this digital infrastructure vertical integrates into L&T’s overall financial profile and whether it provides a steady, long-term revenue stream compared to the company’s conventional order book.