Lucknow to become a future AI hub, 50 startups planned over five years

Lucknow AI hub plans include a new AI City at Vrindavan Yojana IT City, support for AI startups and the expansion of HCLTech's existing IT campus. These developments aim to expand the city's technology sector, create jobs and add office space. The article examines how these projects could influence employment opportunities, commercial development and housing demand.

Lucknow AI hub

Lucknow is being developed as a future artificial intelligence hub, with plans to support at least 50 AI startups over the next five years and expand its technology infrastructure. The proposed AI City at Vrindavan Yojana IT City will bring together AI research, computing facilities, startup incubation and commercial workspaces. The Lucknow AI hub plan is backed by a proposed investment of around Rs 370 crore in AI City, alongside a separate Rs 500-crore expansion of HCLTech’s IT City campus. These developments are expected to expand Lucknow’s technology sector, create jobs and increase demand for office space.

Lucknow AI hub to create jobs and support startups

The expansion of Lucknow’s AI ecosystem is expected to create employment through technology companies, startups, research facilities and supporting business services. The planned AI City will combine high-performance computing infrastructure, AI testing and simulation laboratories, an incubation centre for AI and deep-tech startups, and flexible workspaces. These facilities can support roles in AI development, software engineering, data analysis, machine learning, product development and technology research.

HCLTech’s IT City expansion has announced an investment of around Rs 500 crore in its second phase, covering approximately 20 acres and adding 9.5 lakh sq ft of space. The development is expected to create around 6,000 direct and indirect job opportunities, with new office capacity designed to accommodate thousands of technology professionals.

AI and emerging-technology training for 1,000 students from local colleges has also been announced for FY27. The programme can help graduates develop skills relevant to technology employers and improve their access to specialised roles. The plan to support 50 AI startups over five years could create more jobs in software development, research and product services. The Lucknow AI hub’s deep-tech innovation ecosystem is also intended to cover applied AI, industrial AI, healthcare technologies, AI-enabled diagnostics and government technology. This could create jobs in AI-based healthcare, public services and industry, beyond regular software support roles. 

What will the Lucknow AI hub do for real estate?

The proposed AI City at Vrindavan Yojana IT City will add offices, startup facilities and shared workspaces to Lucknow’s commercial property market. The wider IT City development covers 258.59 acres, with more than 20 acres planned for the first phase of AI City. This concentration of technology workplaces could influence residential demand in Vrindavan Yojana, where employees may look for apartments or independent homes within commuting distance of their offices. The new offices will drive demand for nearby housing as AI companies set up operations and bring more employees to the area. 

Early-stage startups and smaller technology firms may bring employees looking for rental accommodation, while established companies could attract professionals seeking longer-term housing. Vrindavan Yojana’s existing apartments and residential projects can accommodate employees seeking homes near the AI hub. The growing workforce will also support demand for shops, restaurants and daily services, creating more business opportunities within nearby residential areas. 

Price insights

Locality

Average price per sq ft

Top developers

Vrindavan Yojana

Rs 6,000 –  9,500

Eldeco, Shri Balaji Constructions, UPAVP

Raebareli Road

Rs 4,500 – 7,000

Eldeco, Omaxe, Rohtas Builders

Sushant Golf City

Rs 6,800 – 10,700

Paarth Infrabuild, Oro Constructions, Rishita Developers

Sultanpur Road

Rs 5,300 – 6,600

Rohtas Builders, Signature Group, Shri Balaji Constructions

Arjunganj

Rs 5,500 – 9,700

Signature Group, Shalimar Corp, EMAAR

Source: Square Yards Research

HCLTech’s new office space will have capacity for approximately 4,500 technology professionals. Located along the Sultanpur Road corridor, HCLTech’s expanded campus will support housing demand in nearby residential areas as more technology professionals work at the site. Neighbourhoods such as Vrindavan Yojana, Telibagh and Raebareli Road near the AI City, along with Ahmamau, Arjunganj and Sushant Golf City near HCLTech’s Sultanpur Road campus, could attract tenants and homebuyers seeking shorter commutes. With projects by top builders like Eldeco, Omaxe, Shri Balaji Constructions and Signature Group, these localities offer a range of residential options for homebuyers. 

The AI hub could create separate centres of technology employment, each linked to the surrounding housing market. For Vrindavan Yojana, the key factor will be the number of businesses that begin operating at AI City and the jobs they generate. Around the HCLTech campus, office occupancy and hiring will shape the need for nearby accommodation. These factors will shape rental demand and residential property prices as the projects progress.

Disclaimer: This image is AI-generated and is intended for illustrative purposes only. It does not represent the actual site or proposed developments

Riddhi Chatterji Combining her fascination with people and places, Riddhi has found “home” in real estate, where she strives to create enriching reading experiences. She owes her ability to explore technical insights with unique perspectives to her academic background in English Literature and the rigorous training in critical reading, writing, and thinking. A wordsmith at heart, you can find her with her head buried in a book or on the lookout for movie, music, and food recommendations.
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