Nearly 50% of Larsen & Toubro’s (L&T) upcoming data centre capacity is expected to be consumed by sovereign and highly regulated sectors—including government departments, finance, telecom, and insurance—signalling a sharp rise in demand for secure, compliant, and AI-ready digital infrastructure.
AI-Ready infrastructure for regulated sectors
“If we put together the highly regulated entities along with the government, it will account for around 50% of data centre capacity,” Seema Ambastha, chief executive, L&T-Vyoma, said.
Ambastha added that the shift towards sovereign compute environments is becoming essential as enterprises adopt artificial intelligence at scale.
To cater to this demand, L&T is seeking approval for five new data centre projects that would expand its current 30MW capacity to 300MW by 2031—marking a tenfold increase.
Approvals across multiple sites, including Chennai and Bengaluru, are already underway, with additional land parcels currently being evaluated.
L&T has also rebranded its digital infrastructure vertical as Larsen & Toubro-Vyoma—a name the company says draws inspiration from the Sanskrit word for “sky,” symbolising limitless growth and ambition. The business, launched in 2024, was earlier called as L&T-Cloudfiniti.
Beyond EPC
The move underscores L&T’s transition from being an Engineering, Procurement and Construction (EPC) contractor for third-party data centres to developing and operating its own sovereign-grade, high-density campuses designed for GPU workloads and AI-native applications.
The company said that its flagship 30MW Chennai site, located within a 300-acre campus, has already shifted from traditional CPU loads to 55kW GPU workloads, reflecting evolving AI infrastructure requirements.
As part of its sustainability commitments, L&T-Vyoma is sourcing 65% of its Chennai power requirements from renewable energy and will increasingly deploy liquid cooling technologies to improve efficiency, especially with next-generation GPU architectures. This, the company says is in line with its commitment to be water neutral by 2035 and carbon neutral by 2040.
According to a recent report by ratings agency Crisil, India’s data centre operators are projected to generate around Rs 20,000 crore in annual revenue by FY28, driven by a compound annual growth rate of 20–22% between FY26 and FY28.