Lucknow is emerging as India’s first AI City, with a 70-acre hub in Nadarganj driving innovation in AI and IT. Backed by ₹10,732 crore from the IndiaAI Mission, the project integrates cutting-edge technology, research centres, and educational institutions. It aims to boost startups, attract global tech giants, and position Uttar Pradesh as a leader in India’s digital transformation.
Lucknow’s AI Colony: A New Era of Technological Innovation
Strategic Location and Infrastructure
The AI Colony, set to be developed on a 70-acre plot in Nadarganj Industrial Area near Chaudhary Charan Singh Airport, benefits from proximity to the Lucknow-Kanpur highway. The Uttar Pradesh government has allocated 40 acres initially, free of encumbrances, with plans to expand. The project includes plug-and-play office spaces, Grade-A commercial towers, and AI-enabled transport systems to foster a walk-to-work model.
Massive Investment Boost
In March 2024, the IndiaAI Mission sanctioned ₹10,732 crore, a 67% higher investment than any other tech infrastructure in India. This funding supports 10,000 Graphics Processing Units, multi-modal language models, and an AI innovation centre. The state budget also allocated ₹5 crore for the AI City, underscoring Uttar Pradesh’s commitment to technological leadership.
Fostering Startups and Innovation
The AI Centre of Excellence at IIIT Lucknow already supports over 15 AI and machine learning startups, nurturing a culture of creativity. The AI Colony will house dedicated R&D labs, tech incubators, and spaces for startups and corporates, aiming to create a vibrant ecosystem for innovation in healthcare, agriculture, and urban management.
Educational and Industry Collaboration
Partnerships with institutions like IIT Kanpur, IIM Lucknow, and APJ Abdul Kalam Technical University are driving skill development. The state has mandated innovation-focused curricula in over 750 engineering colleges and 2,500 polytechnics. Chandigarh University’s ₹2,500 crore investment will promote AI education and startup growth, preparing a future-ready workforce.
Economic and Global Ambitions
The AI Colony aligns with Uttar Pradesh’s goal to become a $1 trillion economy by 2027. By attracting global tech giants like HCL, TCS, and Deloitte, Lucknow is poised to rival IT hubs like Bengaluru and Hyderabad. The project is expected to generate thousands of jobs and position India as a global AI leader, with a projected market growth to $17 billion by 2030.
AI-Driven Public Services
The AI City will integrate AI into public services, such as a high-tech traffic management system and an AI-powered multilingual translation system for the Maha Kumbh. These initiatives aim to enhance governance, security, and citizen services, leveraging machine learning, IoT, and big data for smarter urban management.
Policy and Incentives
The Uttar Pradesh government offers financial incentives, including 25% Capex support up to ₹20 crore for IT parks and ₹100 crore for IT cities, along with 100% stamp duty exemptions under the IT and ITeS Policy 2022. A draft AI policy aligned with Vision 2047 is in the works to ensure ethical and sustainable AI development.
Disclaimer: This article is based on recent news reports, official statements from the Uttar Pradesh government, and industry insights from sources like The Hindu BusinessLine, Hindustan Times, and Times of India. Information is accurate as of September 2, 2025, and subject to change as the project progresses. Readers are advised to verify details through official channels for the latest updates.