Uttar Pradesh Government Plans ₹600 Crore AI Investment, Proposes AI City Near Lucknow

The Uttar Pradesh government has proposed investments of nearly ₹600 crore for artificial intelligence projects and related digital infrastructure, as per news reports.  

The plan includes around ₹230 crore for the UP AI Mission and about ₹370 crore for the development of an AI City near Lucknow. The provisions were included in the state’s 2026-27 Budget, which also covered spending on emerging technologies and digital infrastructure projects. 

AI City Project Near Lucknow 

The proposed AI City is expected to come up over 260 acres on the outskirts of Lucknow. According to state officials, the project will include computing infrastructure, hardware facilities and AI-related research and development centres. 

The government said the project is to support activities linked to AI deployment, testing and commercial applications.  

Push for Deep-Tech Sectors 

The state government has also increased its focus on sectors such as Quantum Computing and other deep-tech industries. Uttar Pradesh Chief Minister Yogi Adityanath has said the state is working to expand its presence in advanced technology sectors. 

UP State Transformation Commission Chief Executive Officer Manoj Kumar Singh recently said artificial intelligence was being introduced in different areas of governance and administration.  

Data Centre and Manufacturing Targets 

Apart from AI-related projects, the state is targeting investments of around ₹70,000 crore in electronics manufacturing and data centres. The UP Electronics Manufacturing Policy is expected to attract nearly ₹40,000 crore in investments. 

Under the UP Data Centre Policy 2021, the government has proposed eight private data centre parks with a combined capacity of 900 megawatts. The policy estimates investments of around ₹30,000 crore. 

Lucknow has seen technology firms such as IBM, InMobi and Sify Technologies establish operations in recent years. Existing IT companies including Tata Consultancy Services and HCL Technologies also have a presence in the city. 

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Conclusion 

The state government’s AI plans include investments in infrastructure, research facilities and data centres. Budgetary provisions for these projects have been outlined in Uttar Pradesh’s 2026-27 financial plan. 

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