“Lucknow is poised to become India’s first AI City with a ₹10,732 crore investment under the IndiaAI Mission. The 70-acre project in Nadarganj integrates AI-driven housing, featuring luxury and affordable residences, walk-to-work models, and smart transport. Aimed at fostering innovation, it includes tech hubs, educational institutes, and job opportunities, positioning Lucknow as a global AI leader.”
Lucknow’s Leap into the Future: AI-Powered Housing in India’s First AI City
In a transformative push to position Lucknow as a global technology hub, the Uttar Pradesh government is developing India’s first AI City in the Nadarganj Industrial Area, spanning 70 acres near Chaudhary Charan Singh Airport. Backed by a ₹10,732 crore investment under the IndiaAI Mission, approved in March 2024, this ambitious project aims to integrate artificial intelligence into urban living, with a focus on AI-driven housing complexes that blend luxury and affordability. The initiative, spearheaded by the UP Electronics Corporation Ltd. (UPECL), is designed to foster an AI ecosystem, attract tech investments, and create thousands of jobs.
The AI City project emphasizes a walk-to-work model, incorporating residential complexes with modern amenities to cater to diverse income groups. These smart homes will leverage AI technologies for features like energy-efficient systems, automated security, and IoT integration for seamless living. The Expression of Interest (EoI) issued by UPECL highlights financial incentives for developers, including 25% Capex support up to ₹100 crore for IT City development and 100% stamp duty exemption under the IT and ITeS Policy 2022. A dedicated real estate developer will build plug-and-play office infrastructure and Grade A office towers for startups, incubators, and corporates, ensuring a robust tech ecosystem.
Beyond housing, the AI City will house top engineering and management institutes to promote industry-academia collaboration, alongside AI-enabled internal transport systems for sustainable mobility. The project aligns with Uttar Pradesh’s vision to become a $1 trillion economy by 2027, with Lucknow emerging as a complement to Noida’s established IT hub. The state’s IT ecosystem is already bolstered by major players like HCL and TCS, a skilled workforce of over 75,000 tech professionals, and institutions like IIM-Lucknow and IIIT-Lucknow.
Significant progress has been made, with land acquisition finalized and infrastructure development underway. The government has allocated ₹5 crore in the state budget for the project, as announced by Finance Minister Suresh Khanna, with an additional ₹10 crore for related aerospace and defense initiatives. The AI City will also feature advanced infrastructure like data centers, tech labs, and AI research centers, supported by partnerships with global tech firms and academic institutions like IIT Kanpur and IIM Lucknow.
The project’s broader impact includes job creation across AI research, data management, cybersecurity, and administration, with a focus on skilling local youth through educational programs. For instance, the state is collaborating with APJ Abdul Kalam Technical University to revise curricula and train graduates in AI and machine learning. Additionally, AI applications are already transforming governance in Uttar Pradesh, with initiatives like AI-based traffic management systems proposed for Lucknow and AI-enabled check gates to curb illegal mining.
The AI City is part of a larger urban development strategy, including the Uttar Pradesh State Capital Region (UPSCR) framework, which spans six districts and aims to decentralize tech growth. Alongside the AI City, projects like Aerocity (1,500 acres) and Wellness City (1,474 acres) are reshaping Lucknow’s skyline, with the latter featuring over 10,000 apartments and medical facilities. These initiatives reflect the state’s commitment to sustainable urban planning and economic modernization, positioning Lucknow as a model for other Indian states.
Disclaimer: This article is based on recent news reports, government announcements, and reliable sources, including Hindustan Times, The Times of India, and UP Electronics Corporation Ltd.’s official statements. Information is accurate as of August 5, 2025, and subject to change as projects progress. Readers are advised to verify details through official channels for investment or participation.