UP plans for India’s first AI city in Lucknow

Uttar Pradesh, India’s largest state, is taking a pioneering step by announcing its intention to build the country’s inaugural AI city in Lucknow, dedicated to fostering and advancing the Artificial Intelligence (AI) ecosystem.

According to a report by Grand View Research, the global AI market reached $137 billion in size in 2022 and is anticipated to witness a compound annual growth rate of 37.3 per cent from 2023 to 2030.

Lucknow currently hosts Centers of Excellence specialising in AI and MedTech, with significant AI integration. The AI Center of Excellence, located in IIIT Lucknow, supports over 15 AI/ML start-ups, cultivating a culture of innovation and entrepreneurship.

Expressing its vision through an Expression of Interest (EoI), the UP Electronics Corporation Ltd., the project’s nodal agency, envisions the AI city as a hub where cutting-edge technology, research centers, and educational institutions converge to foster ideas and nurture the workforce of the future.

The EoI invites a real estate developer to build and operate the AI city, which will feature plug-and-play infrastructure and Grade A office space for incubators, start-ups, and corporates.

The government pledges support by providing 40 acres in Nadarganj Industrial Area for the project, free from encumbrances, along with assistance in land acquisition, zoning regulations, and other necessary clearances.

Financial incentives include a one-time Capex support of 25 per cent up to ₹20 crore for an IT Park and ₹100 crore for an IT City. Additionally, the developer will enjoy a 100 per cent stamp duty exemption as per the IT and ITeS Policy, 2022.

To promote a holistic living and working environment, the AI City will incorporate a mix of luxury and affordable residential complexes following a walk-to-work model. Dedicated spaces for top engineering and management institutes aim to encourage industry-academic collaboration, while AI-enabled internal modes of transport will enhance connectivity.

Aligned with its ambition to become a $1 trillion economy in the next five years, the UP government identifies IT and ITeS as core sectors propelling economic growth. The state ranks sixth in terms of the IT ecosystem and boasts one of the highest numbers of start-ups in India.