Uttar Pradesh is making history with a massive ₹10,732 crore investment to transform Lucknow into India’s first AI City under the IndiaAI Mission approved in March 2024. This unprecedented investment—67% higher than any other technology infrastructure project in India—aims to establish a world-class AI ecosystem with 10,000 GPUs, multimodal language models, and an advanced AI Innovation Centre.
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UP Invests ₹10,732 Cr to Build India’s First AI City
AI City Project Details
| Aspect | Details |
|---|---|
| Total Investment | ₹10,732 crore |
| Location | Lucknow, Nadarganj Industrial Zone |
| Land Area | 40-70 acres near Amausi Airport |
| Infrastructure | 10,000 GPUs, AI Innovation Centre |
| Training Initiative | 10 lakh people (AI Pragya program) |
| Developer Incentives | ₹20 cr IT Park, ₹100 cr IT City Capex |
| Economic Target | ₹1 trillion UP economy by 2030 |
| Launch | 2025-26 (ongoing development) |
Strategic Vision: India’s Digital Transformation
The AI City positions Uttar Pradesh as India’s AI capital, competing globally with tech hubs like Silicon Valley and China’s AI centres. The project aligns with India’s Digital India vision and National Strategy on Artificial Intelligence, expected to add $500 billion to India’s GDP by 2025 and $15.7 trillion globally by 2030.
Infrastructure and Innovation
The ₹10,732 crore investment will fund 10,000 Graphics Processing Units (GPUs), multi-modal language models, and the establishment of an AI innovation center in Lucknow—67% higher than any other technology infrastructure in the country. The 40-acre site in Nadarganj Industrial Zone, located 3 km from Lucknow International Airport, will feature Grade A office space, plug-and-play technology infrastructure, and AI-enabled internal transport systems.
Training and Skill Development
The AI Pragya initiative will train over 10 lakh people, including youth, teachers, gram pradhans, government employees, and farmers in AI technologies. Partnerships with IIT Kanpur and IIM Lucknow will enhance research capabilities, while dedicated AI research centers and incubation hubs nurture the startup ecosystem—Lucknow already supports 15+ AI/ML startups through its Centre of Excellence.
Smart City Integration
An AI-based Intelligent Traffic Management System is expected to cut travel time by 25%, reduce fuel usage by 20%, and improve emergency response times by 40%. A proposed Uttar Pradesh Artificial Intelligence Commission will govern AI integration across government departments.
Financial Incentives
Developers receive attractive benefits: 25% Capex support up to ₹20 crore for IT Parks and ₹100 crore for IT Cities, plus 100% stamp duty exemption under the IT and ITeS Policy 2022. The project includes luxury and affordable housing with walk-to-work models, fostering industry-academic collaboration.
The Verdict: As India’s sixth-largest IT ecosystem state, UP aims to become a $1 trillion economy by 2030, with IT and ITeS as core sectors. The AI City represents a bold leap toward positioning India competitively on the global AI stage. For more updates, visit TechnoSports.
FAQs
Where will India’s first AI City be located?
Lucknow’s Nadarganj Industrial Zone, on 40-70 acres near Amausi Airport, 3 km from the international airport.
How many people will receive AI training in UP?
Over 10 lakh people including youth, teachers, government employees, and farmers under the AI Pragya initiative.
