"Uttar Pradesh Set to Construct India's First AI City in Lucknow"

In a groundbreaking move, Uttar Pradesh, India's largest state, is set to construct the country's inaugural AI city in Lucknow, signaling a bold step toward fostering and advancing the AI ecosystem.

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

Lucknow, already home to Centers of Excellence in AI and MedTech with extensive AI integration, boasts a thriving environment for innovation and entrepreneurship. The AI Center of Excellence (COE) at IIIT Lucknow supports over 15 AI/ML startups, cultivating a culture of creativity and enterprise.

The proposed AI city aims to be a nexus of ideas and a breeding ground for the workforce of the future by integrating cutting-edge technology, research centers, and educational institutions. The UP Electronics Corporation Ltd., serving as the nodal agency for the project, has issued an Expression of Interest (EoI) inviting real estate developers to participate in the development and operation of the AI city.

The government will allocate 40 acres in the Nadarganj Industrial Area for the project, free from encumbrances, and will provide financial incentives to the developer. These incentives include one-time Capex support, stamp duty exemptions, and other attractive benefits, as outlined in the IT and ITeS Policy, 2022.

The AI city is envisioned to include a mix of luxury and affordable housing complexes, promoting a walk-to-work model. Dedicated spaces for top engineering and management institutes will foster industry-academic collaboration, while AI-enabled internal modes of transport will enhance connectivity.

As Uttar Pradesh pursues its goal of becoming a $1 trillion economy within the next five years, the IT and ITeS sectors have been identified as pivotal contributors to this vision. With Noida emerging as a global IT and ITeS hub, the state aims to further elevate the sector by promoting Tier 2 cities like Lucknow, recognized by leading IT industry associations as emerging technology hubs.

The EoI document emphasizes the strategic importance of AI as a key growth driver for the global IT and ITeS sectors, and Uttar Pradesh is poised to leverage this potential. The city already hosts major IT players, including HCL and TCS, and boasts a robust tech ecosystem supported by a skilled workforce comprising over 75,000 tech professionals, 23,000 STEM graduates, and 300+ colleges, including renowned institutions such as IIM-Lucknow, IIIT-Lucknow, BBDU, and Amity.

HBL