Uttar Pradesh Targets 50 AI Startups as HCL Tech Invests ₹500 Crore in Lucknow IT City Expansion

The Uttar Pradesh government is positioning Lucknow as a hub for artificial intelligence, semiconductors, cybersecurity and deep technology, signalling a shift from traditional IT services towards innovation-led growth. The state plans to support at least 50 world-class AI startups over the next five years, while seeking greater industry participation to build an ecosystem capable of attracting talent, investment and global business.

The announcement coincided with the launch of Phase 2 of HCL IT City Lucknow, marking the 10th anniversary of HCL Tech’s campus in the city. The expansion involves an investment of approximately ₹500 crore to develop around 9.5 lakh sq. ft. across 20 acres, including a new IT building with capacity for approximately 5,000 seats. The project is expected to generate around 6,000 direct and indirect employment opportunities.

HCL Tech Chairperson Roshni Nadar Malhotra said Uttar Pradesh was the karmabhoomi and home of the HCL Group, emphasising the potential for global technology operations to grow beyond traditional metropolitan centres when supported by the right infrastructure and talent. HCL also announced an AI training programme for 1,000 students from local colleges, linking the expansion to the state’s broader ambition to develop future-ready skills.

The proposed startup push builds on Uttar Pradesh’s expanding technology economy. According to the state government, IT and IT-enabled services exports have crossed ₹1 lakh crore, up from approximately ₹12,000–15,000 crore a decade ago. The government aims to raise this figure to ₹2.5 lakh crore over the next four years. Electronics exports have grown from around ₹3,800 crore to ₹45,000 crore, with a target of ₹2 lakh crore by 2030.

“Lucknow has the potential to become a leading AI innovation hub, supported by a strong startup ecosystem, skilled talent and sustained industry investment,” said Yogi Adityanath, Chief Minister of Uttar Pradesh.

The state is also expanding its IT infrastructure, with operational IT parks in Lucknow, Kanpur, Prayagraj, Meerut and Agra, alongside further development plans in other cities. Under its startup policy, Noida and Lucknow are being positioned as deep-tech hubs, while work continues towards establishing an AI City in Lucknow.

The challenge now is to translate investment and policy ambition into a sustainable innovation ecosystem. Beyond infrastructure, the success of the AI City vision will depend on startup funding, research partnerships, access to computing resources and the ability to retain skilled professionals. HCL’s expansion and training initiative provide a foundation, but measurable progress will ultimately depend on how effectively government, industry and academia work together.

Alongside its technology investments, HCL Foundation programmes have reached more than 50 lakh people across over 3,000 villages in Uttar Pradesh, with initiatives spanning rural livelihoods, education and development.