Aimed at transforming the state into a $1 trillion economy, the project has government backing of 40 acres in Nadarganj Industrial Area, free of any encumbrances.
India’s largest state, Uttar Pradesh, has planned to establish India’s first AI city in Lucknow, aimed at nurturing and promoting the AI ecosystem. An Expression of Interest (EoI) has been issued by UP Electronics Corporation Ltd., the project’s nodal agency, inviting a real estate developer to construct and operate the AI city.
The plan includes integrating advanced technology, research centers, and educational institutions to create a vibrant hub where ideas thrive and future talent is developed. The real estate developer is expected to build office infrastructure with plug-and-play facilities and a tower offering Grade A office space for incubators, start-ups, and corporations.
The government is backing this project robustly, providing 40 acres in Nadarganj Industrial Area, free of any encumbrances. This support extends to land acquisition, zoning regulations, and other necessary clearances. Financial incentives are also part of the support, including one-time capital expenditure support and 100% stamp duty exemption as outlined in the IT and ITeS Policy, 2022.
The AI City is envisioned to include a mix of luxury and affordable residential complexes, endorsing a walk-to-work model. It will also feature dedicated spaces for top engineering and management institutes to foster industry-academic collaboration and AI-enabled internal transportation.
This project is a key component of the Uttar Pradesh government’s goal to transform the state into a $1 trillion economy over the next five years. IT and ITeS sectors are identified as central to this economic drive. It aligns with the growing global AI market, which, according to a report by Grand View Research, stood at $137 billion in 2022 and is expected to grow at a compound annual growth rate of 37.3% from 2023 to 2030.
Lucknow is already home to Centers of Excellence in areas like AI and MedTech, with significant AI integration. The AI Center of Excellence (COE) at IIIT Lucknow supports over 15 AI/ML start-ups, fostering a culture of innovation and entrepreneurship.
Home to major IT players like HCL and TCS, Lucknow’s ecosystem is supported by a skilled workforce, numerous tech professionals, STEM graduates, and over 300 colleges. These include prestigious institutions like IIM-Lucknow and IIIT-Lucknow, contributing to the city’s appeal as a budding AI and technology hub.
