Uttar Pradesh’s Bundelkhand to Become AI-Cloud Hub: State Eyes ₹2 Lakh Crore Data Centre
Uttar Pradesh plans to attract Rs 2 lakh crore in data centre and AI infrastructure investments as Chief Minister Yogi Adityanath pitches Bundelkhand as a major digital infrastructure hub.

By Samarjit Kaur

on May 22, 2026

Uttar Pradesh Chief Minister Yogi Adityanath has pitched Bundelkhand as the starting point for the state’s next phase of digital infrastructure expansion, with plans to attract nearly ₹2 lakh crore in investments for data centres, artificial intelligence (AI), cloud computing and allied technologies.

“The state government is positioning Bundelkhand as a strategic destination for large-scale digital infrastructure projects backed by land availability, power access and expressway connectivity. The move is part of Uttar Pradesh’s broader push to become a major data centre and electronics manufacturing destination in India.”

-said Yogi Adityanath, Chief Minister, Uttar Pradesh

The proposed investment comes amid rapid growth in India’s data centre market. Some major influential factors include rising AI workloads, cloud adoption, digital payments, OTT consumption and government digitisation programmes.

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Positioning Uttar Pradesh as a New Data Centre Growth Zone

Officials said Bundelkhand in Uttar Pradesh could serve as the starting point for a dedicated data centre cluster outside the National Capital Region (NCR), helping decentralise digital infrastructure development.

The idea is to promote the region for large land parcels, lower operational costs and improved industrial connectivity through projects such as the Bundelkhand Expressway and the defence corridor.

The state is also banking on increasing electricity capacity and on policy incentives to attract private-sector investment.

The proposed investments are expected to span hyperscale data centres, AI computing infrastructure, cloud storage facilities and digital services ecosystems. The state government is also looking to position Uttar Pradesh as a key node in India’s growing AI and semiconductor-linked infrastructure ecosystem.

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Expanding Digital Infrastructure: Uttar Pradesh Got Ambitions

Uttar Pradesh has been actively promoting investments in electronics manufacturing, semiconductor-linked supply chains, logistics and digital infrastructure following commitments announced during the Global Investors Summit.

Industry experts say that Tier-2 regions are increasingly entering the data centre race as states compete to attract technology investments in artificial intelligence, digital public infrastructure and enterprise cloud demand.

With the Bundelkhand proposal, the Uttar Pradesh government seeks to position the region as a long-term infrastructure base for India’s expanding digital economy and AI-driven computing needs.

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