While states of India are in a race to use Artificial Intelligence, its largest state, Uttar Pradesh, has gone a step ahead with the plans to build the country’s first AI city in Lucknow to house and promote the AI ecosystem. According to a report by Grand View Research, the global AI market size reached $137 billion in 2022 and is expected to expand at a compound annual growth rate of 37.3% from 2023 to 2030. Lucknow houses Centres of Excellence in domains like AI and MedTech. The AI COE alone backs more than 15 AI/ML startups, which nurtures a culture of creativity and entrepreneurship.  

Deploying cutting-edge technologies, research centres and educational institutions, the AI city aims to be a hub where ideas flourish, and the workforce of the future is nurtured, the Expression of interest issued by UP Electronic Corporation Ltd reads. It is a nodal agency for the project that invites a real estate developer to develop and operate the AI city. This real estate developer will build office infrastructure using the plug-and-play infrastructure and a tower with Grade A office space for incubators, startups and corporates.  

As per reports, the Government of India will provide around 40 acres in the Nadarganj Industrial Area for the project, which is free of all restraints and supports land acquisition, regulations, zoning and other significant clearances.  

The EoI document says the developer will also be provided financial support through various financial incentives like one-time Capex support of 25% up to 20 crore rupees for IT Park and 100 crore rupees for IT Coty and 100% stamp duty exemption as per the IT and ITeS Policy 2022.  

UP Electronics Corporation Ltd. said in the EoI that AI City requires a mix of luxury and affordable housing residential complexes to include a walk-to-work model. A dedicated space for top engineering and management institutes will be offered to enhance industry-academic collaboration. Additionally, there will be AI-enabled internal modes of transport. 

The UP government aims to become a $1 trillion economy in the next five years, and in this regard, IT and ITeS have been identified as core sectors to propel the economy in this direction. UP is the sixth-largest state in the IT ecosystem and is home to one of India’s highest numbers of startups.