Key Highlights
The Uttar Pradesh government has received a substantial corpus of ₹10,732 crore earmarked for the development of Lucknow as India’s first Artificial Intelligence (AI) City under the IndiaAI Mission approved in March 2024
The AI City project will be developed on 70 acres in the Nadarganj Industrial Area near Chaudhary Charan Singh International Airport, designed to foster an ecosystem of AI research, innovation, education, and industry collaboration
This initiative aims to position Lucknow on par with India’s leading IT and technology hubs, driving economic growth, attracting investments, and creating thousands of skilled jobs in AI and related sectors
The AI City plan is part of a broader vision to make Uttar Pradesh a national leader in emerging technologies through infrastructure development, startup incubation, educational partnerships, and industry collaboration
The project includes high-tech infrastructure such as data centers, research and development labs, office spaces for startups and corporates, and residential complexes with a “walk-to-work” model supporting balanced live-work environments
Vision and Importance of the AI City
Lucknow, already home to an AI Centre of Excellence nurturing over 15 startups, is set to become the country’s premier AI-focused urban ecosystem. The government’s vision is to integrate technology into daily life and economic activity, turning the city into a hub where innovation, research, and enterprise converge. With IndiaAI Mission funding and active state support, the AI City will cultivate a future-ready workforce with digital skills, enabling long-term economic and technological leadership.
Infrastructure and Facilities Planned
Dedicated data centers will handle massive computational needs vital for AI applications and research
R&D labs will serve as incubators for developing cutting-edge AI technologies across sectors such as healthcare, agriculture, education, and governance
Modern office towers will provide plug-and-play, Grade-A spaces for startups, established technology firms, and innovation centers
Residential zones will combine luxury and affordable housing with a walk-to-work philosophy, easing commutes and promoting sustainability
AI-enabled internal transport systems and green zones will enhance connectivity and quality of life within the AI City
Economic Impact and Job Creation
The ₹10,732 crore investment reflects a robust commitment to economic transformation through technology. By attracting leading national and global tech firms, encouraging startups, and leveraging educational partnerships, the AI City is expected to spawn thousands of jobs spanning R&D, data science, cybersecurity, administration, and support services. Skill development programs in collaboration with academic institutions will ensure a continuous pipeline of qualified talent, benefiting local youth and professionals.
Policy Support and Incentives
The Uttar Pradesh Electronics Corporation Limited (UPECL) acts as the nodal agency coordinating the initiative, offering financial incentives such as up to 25% capital expenditure support and stamp duty exemptions per the IT and ITeS Policy 2022. Land allocation in Nadarganj is free of encumbrances, with streamlined regulatory clearances to facilitate timely project execution. The government’s intervention ensures ease of business and a favorable environment for investment and innovation.
Strategic Significance for Uttar Pradesh and India
The AI City complements Uttar Pradesh’s strategy to decentralize technology growth beyond traditional metros, establishing the state as a nucleus of AI advancement. It aligns with India’s broader ambition to become a global AI powerhouse, harnessing technological tools to boost governance, economic growth, and social development. By creating a comprehensive AI ecosystem in Lucknow, the project positions the city and state at the forefront of digital transformation and future-ready urbanization.
Broader Technology Ecosystem Linkages
Lucknow’s AI City initiative dovetails with other state initiatives such as Aerocity and the Uttar Pradesh State Capital Region development, collectively building a high-tech corridor to attract investments and foster innovation. Collaboration with global tech companies, research centers, and universities will enhance knowledge sharing, technical expertise, and international competitiveness.
Looking Ahead: Milestones and Expectations
With recent budgetary allocations confirmed in the Finance Bill 2025-26 and active expressions of interest (EoIs) inviting real estate developers, the AI City project is moving into its implementation phase. Over the coming years, as infrastructure takes shape and operations commence, Lucknow is expected to witness a technological and economic renaissance that sets a model for AI-driven urban development in India and beyond.
In summary, Lucknow’s AI City, bolstered by a ₹10,732 crore investment, represents a bold and visionary step to establish India’s first city fully rooted in artificial intelligence innovation, research, and industry. It promises cutting-edge infrastructure, strong policy support, and economic opportunities, making the city a beacon of India’s digital future.
Sources: Hindustan Times, Elets eGov, OpenGov Asia
