New Delhi: L&T has won a big contract for the construction of a massive AI infrastructure facility in India. The project to be powered by NVIDIA’s high performance chips is the entry of L&T in the emerging AI Factory business. The order is valued between ₹10,000 crore and ₹15,000 crore, or around $1.05 billion to $1.57 billion.
It is a project that has been awarded with Together AI, an AI cloud platform based in the United States. L&T will develop the AI facility using its AI infrastructure business LTN Compute as well as its AI and data centre business Vyoma.AI. The plant will be constructed at the campus of L&T’s data centre in Chennai, Tamil Nadu.
AI Factory to Feature 10,000 NVIDIA B300 GPUs
The planned use of 10,000 graphics processing units (GPUs) made by NVIDIA is one of the biggest highlights of the project. These high-performing chips are capable of performing intensive AI tasks, such as training AI models, executing AI applications, and optimizing models for particular tasks.
It will feature high-speed network infrastructure, advanced storage systems, and other critical components to ensure the facility has the necessary infrastructure in place to support AI workloads. This will enable Together AI to offer a massive amount of computing power to companies and developers that develop AI applications.
The Chennai location is being built to be a large scale site for AI infrastructure. The project will align with L&T’s broader strategy for establishing a global footprint in AI infrastructure, particularly in India, to help the firm position itself in the competitive international market for AI services and solutions, the company said in a statement.
L&T Enters the AI Factory Business
The order is crucial for L&T due to the expansion of its business from traditional engineering and infrastructure work. The project is part of L&T’s initiatives to create AI-enabled infrastructure in India, the company stated.
It’s also going to work on hyperscale data centres, sovereign cloud platforms, GPU-as-a-Service and managed AI platforms for businesses and government organisations with its AI infrastructure business.
L&T Chairman and Managing Director S N Subrahmanyan said the use of artificial intelligence is growing in significance in almost all industries and that AI factories would help the growth too.
India’s AI Infrastructure Gets a Boost
The project was developed at a time when the demand for AI computing power is rapidly growing globally. Robust data centres and GPUs are essential for companies to develop and utilize the increasingly sophisticated AI models.
In India, L&T-Together AI might generate additional investments in the technology sector and enhance country’s AI computing power. It also highlights the increasing importance of Indian infrastructure companies in the creation of systems for the next phase of AI development.
Investors got excited about L&T’s growth into the booming AI infrastructure segment after the announcement on Thursday, August 13, and the shares of the company rose as high as 1.2%.
