The Uttar Pradesh government has outlined a major push into artificial intelligence and digital infrastructure, proposing investments worth nearly ₹600 crore under its 2026–27 budget framework. The initiative includes funding for a state-level AI mission as well as the development of a dedicated AI City near Lucknow, marking one of the most significant technology-focused allocations in the state’s recent policy roadmap.
According to official budget provisions and government statements, the total outlay is divided into two key components: approximately ₹230 crore earmarked for the Uttar Pradesh AI Mission, and around ₹370 crore allocated for the development of an AI City project on the outskirts of Lucknow.
AI City Planned Over 260 Acres Near Lucknow
The proposed AI City is expected to be developed across roughly 260 acres of land near Lucknow. The project is designed as a large-scale technology hub that will support artificial intelligence research, development, testing, and commercial deployment.
Government officials have indicated that the infrastructure will include:
- High-performance computing facilities
- AI research and development centres
- Hardware testing and deployment environments
- Innovation and incubation spaces for startups and enterprises
The objective is to create an integrated ecosystem where AI-based solutions can be developed and scaled across multiple sectors, including governance, industry, and services.
Reports suggest the project is being structured to attract private participation and global technology firms, positioning Lucknow as a potential AI innovation hub in South Asia.
Focus on Deep-Tech Expansion Beyond AI
Alongside artificial intelligence, the state government is also increasing its emphasis on other advanced technology domains such as quantum computing, cybersecurity, and digital infrastructure. The broader strategy reflects Uttar Pradesh’s attempt to build capacity in emerging technology sectors that require high-end infrastructure and specialised talent.
Officials associated with the initiative have stated that AI is already being integrated into administrative and governance systems to improve efficiency and decision-making processes.
The push aligns with a broader digital transformation strategy aimed at expanding the state’s role in India’s technology ecosystem.
Large-Scale Investment Plans in Data Centres and Manufacturing
In addition to AI-focused initiatives, Uttar Pradesh is also pursuing large investment targets in electronics manufacturing and data infrastructure. The state has outlined an investment pipeline of approximately ₹70,000 crore across these sectors.
Under the electronics manufacturing policy, the government is targeting nearly ₹40,000 crore in investments, while the data centre policy aims to attract around ₹30,000 crore. The state has also proposed the development of multiple data centre parks with a combined capacity of around 900 megawatts.
These initiatives are intended to support high-tech industrial growth, create employment opportunities, and strengthen digital infrastructure across the state.
Growing Technology Ecosystem in Lucknow
Lucknow has gradually emerged as an expanding technology hub with the presence of global and domestic firms including IBM, InMobi, Sify Technologies, Tata Consultancy Services, and HCL Technologies. The government aims to build on this base by encouraging further investment in AI, cloud computing, and data-driven services.
The AI City project is expected to complement these developments by creating a dedicated zone for advanced research, enterprise collaboration, and technology innovation.
Strategic Push Toward Digital Transformation
The proposed investments form part of a broader strategy to position Uttar Pradesh as a leading state in digital infrastructure and emerging technologies. The focus on AI, data centres, and deep-tech ecosystems reflects an effort to align with global trends in automation, intelligent systems, and digital governance.
Officials have indicated that these initiatives are intended to strengthen both public sector efficiency and private sector participation in technology-driven growth.
Conclusion
The Uttar Pradesh government’s ₹600 crore allocation for artificial intelligence and the proposed AI City near Lucknow highlight a structured push toward building a technology-driven ecosystem. With dedicated funding for AI development, infrastructure creation, and deep-tech expansion, the state is aiming to position itself as a significant hub for artificial intelligence and digital innovation in India over the coming years.
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