Uttar Pradesh is transforming Lucknow into India’s first AI City, a 70-acre hub in Nadarganj Industrial Area to foster AI innovation, startups, and research. With ₹10,732 crore from the IndiaAI Mission, the project includes advanced infrastructure, AI-powered transport, and academic collaborations, aiming to position Lucknow as a global tech leader and boost economic growth.
Lucknow’s AI City: A New Era of Technological Excellence
In a groundbreaking move, Uttar Pradesh is developing Lucknow as India’s first Artificial Intelligence (AI) City, a visionary project set to redefine the state’s technological landscape. Spanning 70 acres in the Nadarganj Industrial Area near Chaudhary Charan Singh Airport, the AI City is designed to be a global hub for AI innovation, research, and development. The Uttar Pradesh government, under Chief Minister Yogi Adityanath, has allocated significant resources, including ₹5 crore in the 2025-26 Finance Bill and ₹10,732 crore under the IndiaAI Mission approved in March 2024, to propel this ambitious initiative forward.
The project, spearheaded by the UP Electronics Corporation Ltd. (UPECL), aims to create a thriving ecosystem for AI-focused technology companies, startups, and research institutions. A 40-acre land parcel, free of encumbrances, was initially identified in 2023, with plans later expanded to 70 acres to accommodate a broader vision. The AI City will feature cutting-edge infrastructure, including Grade-A certified commercial spaces, state-of-the-art data centers, tech labs, and flexible workspaces to support incubators, startups, and corporates. The initiative aligns with Uttar Pradesh’s goal to become a $1 trillion economy by 2027, with IT and IT-enabled Services (ITeS) as core drivers.
The AI City will integrate luxury and affordable housing complexes to promote a walk-to-work model, reducing commuting time and enhancing sustainability. AI-powered internal transport systems will ensure seamless connectivity within the city, while dedicated spaces for premier engineering and management institutes, such as IIT Kanpur and IIM Lucknow, will foster industry-academic collaboration. These partnerships aim to nurture a skilled workforce, with over 75,000 tech professionals and 23,000 STEM graduates already contributing to Lucknow’s vibrant tech ecosystem.
Financial incentives, including one-time capital expenditure support of 25% (up to ₹20 crore for an IT Park and ₹100 crore for an IT City) and 100% stamp duty exemptions under the IT and ITeS Policy 2022, have been offered to attract real estate developers. The Expression of Interest (EoI) issued by UPECL invites developers to design, develop, and operate the AI City, emphasizing plug-and-play office infrastructure and a state-of-the-art tower for AI-focused businesses. The project’s strategic location, just 3 kilometers from Lucknow International Airport and connected to the Lucknow-Kanpur highway, enhances its appeal to global investors.
Lucknow’s AI City is already generating buzz, with industry leaders praising its potential. Vishal Dhupar, MD of NVIDIA South Asia, stated at an AI Vision Conclave that Lucknow could become the “AI capital of the world” due to India’s skilled workforce. The city’s existing AI Centre of Excellence at IIIT Lucknow supports over 15 AI and Machine Learning startups, fostering a culture of creativity and entrepreneurship. Additionally, the state government is collaborating with institutions like APJ Abdul Kalam Technical University to revise curricula and train graduates in AI and ML, ensuring a steady supply of talent.
Recent developments highlight the project’s momentum. In February 2025, Skill Development and Entrepreneurship Minister Kapil Dev Agarwal announced at the UP AI Synergy Conclave that the AI City would position Uttar Pradesh as India’s premier AI hub. Chandigarh University also committed ₹2,500 crore to promote AI education and startups in Lucknow, including India’s first AI-enabled multi-disciplinary education system. The upcoming Maha Kumbh in 2025 will showcase an AI-powered multilingual translation system in hospital ICUs, demonstrating practical applications of the technology.
The AI City is part of a broader strategy to transform Uttar Pradesh into a digital powerhouse. Alongside initiatives like the Uttar Pradesh Startup Policy and the UP Aerospace and Defence Unit Employment Promotion Policy 2024, the state is positioning itself as a leader in innovation. The government is also planning special economic zones (SEZs) for AI-based industries and a high-tech AI-based traffic management system for Lucknow, further enhancing the city’s infrastructure.
With the global AI market projected to grow at a compound annual growth rate of 37.3% from 2023 to 2030, reaching $137 billion in 2022, Lucknow’s AI City is poised to capitalize on this trend. The project not only aims to attract national and international tech firms but also to create thousands of jobs in AI research, data management, cybersecurity, and administration. By integrating advanced technology, research, and education, Lucknow is set to emerge as a global leader in the AI revolution, driving economic prosperity and technological innovation.
Disclaimer: This article is based on information sourced from recent news reports, government announcements, and industry insights available on the web. The data reflects developments up to August 6, 2025, and is subject to change as the project progresses. Readers are advised to verify details through official sources for the latest updates.