Key Takeaways
- 50% of L&T’s new data centre capacity will serve government and regulated sectors
- Plans for tenfold capacity expansion from 30MW to 300MW by 2031
- Flagship Chennai facility already handling high-density GPU workloads for AI
- Strong sustainability focus with 65% renewable energy and carbon neutrality targets
Larsen & Toubro expects nearly half of its upcoming data centre capacity to be consumed by sovereign and regulated sectors including government, finance, telecom, and insurance. This signals massive demand growth for secure, compliant, and AI-ready digital infrastructure across India.
Major Capacity Expansion Underway
Seema Ambastha, Chief Executive of L&T-Vyoma, confirmed the significant demand from regulated sectors. “If we put together the highly regulated entities along with the government, it will account for around 50% of data centre capacity,” she stated.
The company is seeking approvals for five new data centre projects that will expand its current 30MW capacity to 300MW by 2031—a tenfold increase. Approvals are progressing across multiple sites including Chennai and Bengaluru, with additional land parcels being evaluated.
Strategic Rebranding and AI Focus
L&T has rebranded its digital infrastructure vertical as Larsen & Toubro-Vyoma, drawing inspiration from the Sanskrit word for “sky” to symbolize limitless growth. The business, launched in 2024, was previously called L&T-Cloudfiniti.
This marks L&T’s strategic shift from being an EPC contractor for third-party data centres to developing and operating its own sovereign-grade, high-density campuses designed specifically for GPU workloads and AI-native applications.
Sustainability and Industry Growth
The company’s flagship 30MW Chennai facility, located within a 300-acre campus, has already transitioned from traditional CPU loads to 55kW GPU workloads, reflecting evolving AI infrastructure needs.
On sustainability, L&T-Vyoma is sourcing 65% of its Chennai power from renewable energy and plans to deploy liquid cooling technologies for improved efficiency with next-generation GPU architectures. These initiatives support the company’s commitment to achieve water neutrality by 2035 and carbon neutrality by 2040.
According to a recent Crisil report, India’s data centre operators are projected to generate approximately Rs 20,000 crore in annual revenue by FY28, driven by 20-22% compound annual growth between FY26 and FY28.
