Uttar Pradesh Plans India’s First AI City in Lucknow to Boost AI Ecosystem

• ByStartupStory     |    December 27, 2023

Uttar Pradesh is gearing up to establish India’s first AI city in Lucknow, aimed at nurturing and promoting the AI ecosystem in the country. The UP Electronics Corporation Ltd, serving as the project’s nodal agency, has issued an expression of interest (EoI) to solicit proposals for designing, developing, and operating the AI City in Lucknow, as per Businessline. The envisioned AI city is envisioned to be a dynamic hub fostering cutting-edge technology, research centers, and educational institutions. The EoI invites real estate developers to participate in constructing and managing the AI city, which aims to cultivate the future workforce.

Lucknow already hosts Centers of Excellence specializing in AI and medtech, demonstrating significant integration of AI technologies. The AI Centre of Excellence at IIIT Lucknow plays a pivotal role in supporting over 15 AI/ML startups, contributing to the development of a vibrant culture of creativity and entrepreneurship.

According to a report by Grand View Research, the global AI market was valued at $137 billion in 2022 and is expected to witness a compound annual growth rate of 37.3% from 2023 to 2030. Additionally, a report from Outlook highlights that the envisioned AI City includes the construction of Grade-A certified commercial spaces for IT companies, a state-of-the-art data center, Grade-A flexible workspaces, and tech labs. The IT and Electronics Department has identified potential land parcels in key locations of Lucknow for the development of the AI City. The 40-acre land parcel in the Nadarganj industrial area holds strategic significance, being near key infrastructure, and offering connectivity to the Lucknow-Kanpur road and the Lucknow International Airport.

This development coincides with the rising prominence of generative AI (Gen AI) among Indian entrepreneurs, leading to the emergence of numerous startups in the segment. According to Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 million between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 billion by 2030 from $1.1 billion in 2023.

Simultaneously, the government is actively involved in formulating regulations for AI to nurture its growth, safeguard interests, and foster innovation in India, according to IT Secretary S Krishnan. Minister of State (MoS) for Information Technology Rajeev Chandrasekhar recently announced plans by the central government to fund and support AI startups in the country, indicating the increasing focus on AI at the government level.

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