L&T aims for $1B revenue from data centers by 2030
What's the story
Larsen & Toubro (L&T), India's largest engineering conglomerate, is betting big on the data center business. The company plans to generate $1 billion in annual revenue from this segment by 2030. The ambitious target comes as part of a broader strategy to build 350 megawatts (MW) of operational capacity in the same time frame.
Growth plan
Current capacity and future expansions
Currently, L&T operates a 30MW data center at its Chennai campus and is expanding capacity in phases. The company is building an additional 30MW in Chennai and another 40MW in Mumbai. By the end of 2027, L&T plans to have a total of 100MW of data center capacity up and running.
Investment
$2.5B investment for 300MW data center capacity
In November, L&T announced plans to invest nearly $2.5 billion over five years to set up 300MW of data center capacity. The company also has the option to expand further if needed. The phased expansion approach is different from other companies in the sector, that are making gigawatt-scale investments amid rising demand for AI infrastructure across India.
Strategic alliance
Partnership with NVIDIA
On February 18, L&T announced a partnership with AI giant NVIDIA to build gigawatt-scale data centers in India. The company plans to increase its capacity to 180MW by 2028, then to 250MW by the end of 2029, and finally reach its target of 350MW by 2030. Despite competitors announcing larger investments, Seema Ambastha, CEO of L&T Vyoma (the company's data center division), said they don't see themselves as falling behind.