L&T to Invest ₹3,600 Crore in Three New Data Centres
Larsen & Toubro (L&T) has announced a ₹3,600 crore investment to establish three new data centres in India, a move aimed at expanding its digital infrastructure and catering to the country’s growing data storage demands. With this expansion, L&T’s data centre capacity will increase from 32 MW to 150 MW by 2027, strengthening its presence in the competitive data centre market.
Expansion Across Key Locations
L&T is set to develop these new data centres in Bengaluru, Panvel, and Mahape, adding to its existing facilities in Mumbai and Chennai. The expansion is designed to support the surging demand for digital services, particularly with the increasing adoption of artificial intelligence (AI) and cloud computing.
Strengthening India’s Digital Infrastructure
India’s data centre industry is experiencing rapid growth, fueled by digital transformation, 5G expansion, and the rise of AI-based applications. The investment aligns with the company’s long-term strategy to enhance its footprint in the data storage and cloud computing sector.
Seema Ambastha, CEO of L&T Cloudfiniti, highlighted that the company is focused on optimizing capital expenditure and ensuring efficient cost management while scaling operations. She emphasized that the expansion of 5G and the entry of satellite-based internet services would drive data centre expansion into tier 2 and tier 3 cities, reducing operational costs and enhancing service reach.
Competing in a Growing Market
India’s data centre market is highly competitive, with major industry players such as Amazon Web Services (AWS), Blackstone, Reliance Industries, and the Adani Group making large investments. AWS has already announced a ₹60,000 crore investment in Telangana, while Blackstone is developing a 150 MW facility in the state with an investment of ₹4,500 crore.
Despite the rising competition, L&T remains confident in the market potential and is open to strategic partnerships to fund its data centre expansion. While the investment will primarily come from L&T’s internal financial resources, the company is considering joint ventures and private equity collaborations at a special purpose vehicle (SPV) level to cater to specific client needs.
Future of L&T’s Data Centre Growth
L&T’s data centre expansion is a strategic step towards solidifying its presence in India’s fast-evolving digital economy. The company is committed to leveraging cutting-edge technology to meet the increasing demand for secure, high-performance, and cost-efficient data solutions.
With digitalization rapidly transforming industries, L&T’s investment in data centres is expected to play a key role in supporting India’s digital infrastructure and cloud computing ecosystem in the coming years.
