L&T's Kanchipuram Data Centre Set to Be Commissioned Soon

Larsen & Toubro Limited (L&T) is set to soon commission its ₹2,000 crore data centre in Sriperumbudur, with the testing phase nearing completion, according to a senior company official. Once operational, the data centre will join major players like Adani, Airtel, and STT Global in establishing a presence in Chennai’s growing data centre market.

P Ramakrishnan, Head of Investor Relations at L&T, mentioned during the company’s Q2 financial results briefing that the 12 MW facility in Chennai is nearing completion and expected to be commissioned shortly. He also revealed plans to scale the centre to 30 MW in the near future.

L&T signed an MoU with the Tamil Nadu government in November 2021 to develop a 90 MW data centre in Kanchipuram. The project will be completed in phases over the next five years, with the company planning to employ around 1,100 people, including 600 direct and 500 indirect jobs. The data centre will offer a range of services, including multi-cloud cybersecurity, digital transformation integration, and application integration.

As part of the project, the Tamil Nadu government will provide support, including uninterrupted power supply and infrastructure, aimed at generating economic and social benefits for the state.

In addition to the Kanchipuram facility, L&T is also considering data centre projects in Mahape, Navi Mumbai, and Whitefield, Bangalore. Ramakrishnan confirmed that the company is exploring multiple opportunities and will share details once plans are finalized.

Chennai is rapidly becoming a major hub for data centres, now ranked as the second-largest in India. A report by Savills India noted that Chennai's IT capacity had grown significantly, reaching 942 MW in H1 2024, up from 158 MW in 2014. Factors such as strong IT infrastructure, a skilled workforce, a supportive government ecosystem, and strategic connectivity have made the city an attractive destination for data centre investments.

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