Lenovo has begun manufacturing AI servers at its Puducherry facility in India, which has been operational since 2005. This new production line will focus on enterprise AI and GPU servers designed to meet the growing demand for AI infrastructure locally and internationally.
Over 60 percent of the servers produced at this facility are slated for export to the Asia-Pacific region, and Lenovo aims to establish India as a central hub for AI technology manufacturing and innovation.
AI Servers and GPU servers to boost global market presence
The plant will make three rack-mounted enterprise AI servers and two flagship 8-way GPU servers. These advanced servers feature a design specifically designed for AI workloads. The facility can produce around 50,000 enterprise AI rack servers and 2,400 high-end GPU units annually, catering to domestic demand and potential expansion into global markets.
This move is expected to significantly boost Lenovo’s business in India, contributing to the country’s growing AI infrastructure needs. It also indicates that Lenovo, as a tech company, is keen to diversify its manufacturing facilities away from Taiwan in a bid to resolve issues that may stem from over-dependence on the country. The company’s strategic focus on manufacturing these high-performance AI servers highlights Lenovo’s commitment to expanding its presence in the global AI server market while enhancing India’s role in the technology ecosystem.
New infrastructure R&D lab in India
In addition to expanding its AI server production, Lenovo has opened a new state-of-the-art Research and Development (R&D) lab in Bengaluru. This lab will be dedicated to advancing Lenovo’s Infrastructure Solutions and will play a key role in designing and developing next-generation server platforms.
The facility has advanced tools for electrical design, thermal analysis, power characterization, and compliance testing. It will focus on system design, hardware, firmware, and software development and contribute to Lenovo’s global R&D initiatives.
The Bengaluru lab joins Lenovo’s network of 18 R&D labs worldwide, including Morrisville, Beijing, and Taipei centers. This new facility underscores Lenovo’s commitment to driving innovation in India, making it a critical component of its global strategy. Lenovo has also expanded its manufacturing capabilities, with over seven million devices produced in India during FY24.
Lenovo’s Commitment to AI and Global Innovation
Lenovo’s investment in AI server manufacturing and R&D in India aligns with its vision of leveraging the country’s talent and ecosystem to drive technological innovation.
In 2023, Lenovo announced a $1 billion investment between FY23 and FY25 to accelerate AI deployment across its devices, infrastructure, and solutions globally. This is part of the company’s larger goal to support the Indian government’s “AI for All” initiative while expanding its global manufacturing footprint.
