Pranav Hotkar
New Delhi, India - February 08, 2026 - Infrastructure major Larsen & Toubro (L&T) said it plans to commission an additional 18 megawatts (MW) of data center capacity by the end of March, taking its total operational data center footprint to 32 MW in the current fiscal year, company officials said during its third-quarter earnings conference call.
The expansion will be supported by a capital expenditure of approximately INR 1,000 crore (~USD 110 million), reflecting L&T’s increased commitment to digital infrastructure amid growing demand from cloud, enterprise, and AI workloads, the company said.
“As of now, we have almost 32 MW of capacity of data center, out of which 14 megawatts is up and running, and another 18 megawatts will get commissioned by the end of this fiscal year,” a senior company official said. “The total capex investment in the data center is roughly in the range of INR 1,000-odd crores.”
L&T’s data center expansion forms part of a broader strategic shift for the engineering and construction conglomerate, which is also investing in semiconductor design-led chips and green energy technologies. During the earnings call, the company noted that its semiconductor unit is engaging multiple customers, with most spending expensed through its profit and loss account rather than capitalized.
In the electrolyzer business, L&T has developed an indigenous 4 MW stack and is upgrading it to an 8-10 MW configuration, with company officials expressing confidence in significant future orders for this technology as part of India’s energy transition initiatives.
The planned data center capacity increase aligns with broader projections for India’s digital infrastructure market, which industry analysts expect will see rapid growth in the next several years. According to a separate industry forecast, India’s total data center capacity could more than double to around 2,000-2,100 MW by fiscal 2027, driven by cloud adoption, data localization policies, and the rise of AI use cases.
L&T’s current operational data center capacity is concentrated in its existing facilities, and the upcoming 18 MW addition will bolster its presence in the sector at a time when demand for hyperscale and enterprise services is on the rise. The company did not disclose precise locations for the new capacity, but its data center arm, L&T Cloudfiniti, has previously highlighted growth plans for sites across major Indian markets.
Investors reacted positively to the earnings update, which also noted a slight decline in consolidated profit after tax due to one-time provisions related to new labor codes but affirmed continued strategic investment in high-growth infrastructure sectors, including data centers, semiconductors, and energy technologies.
