Larsen & Toubro (L&T) is set to transfer its Data Centre and Cloud Services business to wholly owned subsidiary Vyoma.AI Ltd. in a transaction valued at ₹1,400 crore, as the engineering conglomerate moves to consolidate its digital infrastructure and emerging technology businesses under a dedicated platform.
The transfer will be executed through a slump sale on a going-concern basis, with the consideration to be settled through the issue of fully paid-up equity shares of Vyoma.AI to L&T. The transaction is expected to be completed by October 31, 2026, subject to the fulfilment of applicable closing conditions.
In a separate transaction, L&T will also transfer its 100% equity stake in L&T Network Services Pvt. Ltd. to Vyoma.AI for ₹30 crore. This transaction will similarly be settled through the issue of equity shares by Vyoma.AI to L&T.
Vyoma.AI was incorporated in April 2026 as a wholly owned subsidiary focused on data-centre infrastructure and cloud-based technology services. By bringing the businesses under the new entity, L&T is creating a more focused operating structure for areas such as artificial intelligence infrastructure, cloud services and digital infrastructure.
The restructuring comes as India’s data-centre market enters a rapid expansion phase, driven by the growth of cloud computing, artificial intelligence, enterprise digitisation and increasing demand for domestic data storage. The emergence of AI workloads is also creating demand for high-density computing infrastructure, greater power availability and specialised data-centre facilities.
For L&T, the move represents a strategic shift in how its technology-led assets are organised rather than a major near-term financial transaction. The Data Centre and Cloud Services business generated revenue of around ₹36.6 crore in FY26, making it a very small contributor to the group’s overall financial scale. Its reported net worth stood at approximately ₹1,142 crore.
The creation of a dedicated subsidiary could nevertheless provide greater flexibility to scale these businesses as demand for digital infrastructure accelerates. A focused platform can potentially facilitate dedicated investment, partnerships and customer acquisition while separating the operating requirements of technology infrastructure from L&T’s traditional engineering and construction businesses.
The move also aligns with the growing convergence between data centres, cloud computing and AI infrastructure. As enterprises and government institutions increasingly deploy AI applications, the requirement is shifting from conventional data-storage facilities towards computing environments capable of handling intensive workloads, while also meeting requirements around security, resilience and data sovereignty.
The proposed restructuring will therefore place L&T’s data-centre and cloud operations within a dedicated vehicle at a time when digital infrastructure is becoming an increasingly strategic component of India’s broader infrastructure economy. The ability of Vyoma.AI to scale the transferred businesses and build a meaningful order and revenue pipeline will determine the longer-term impact of the move.
