Chhattisgarh Sets Stage for India’s First AI-Focused Data Park

As India accelerates toward a digital future, a new technological landmark is rising quietly in one of its heartland states. Could this signal a new era of tech-led transformation beyond the metros?

In the sweeping plains of Chhattisgarh, far from the buzz of Bengaluru’s startup corridors or Hyderabad’s tech parks, a bold step has been taken toward India’s AI revolution. On May 3, 2025, Chhattisgarh Chief Minister Vishnu Deo Sai laid the foundation stone for what is being hailed as India’s first AI-based data centre park, marking a milestone not just for the state, but for the entire nation.

The event took place in Sector 22 of Nava Raipur, the capital area of Chhattisgarh, a region that's now beginning to wear the look of a rising tech frontier. The project, to be developed by RackBank DataCenters Pvt. Ltd, will be set up on a sprawling 13.5-acre land parcel, with 2.5 hectares designated as a Special Economic Zone (SEZ).

But this isn’t just another data park. This is a future-forward facility designed to be the nerve centre of India’s growing AI ecosystem.

Chattisgarh Data Centre Park 

While data centres are not new to India, what sets this initiative apart is its deep focus on AI-based infrastructure. The facility promises to be a hub of high-performance computing, live data streaming, GPU-based processing, and AI-powered data analytics.

With an initial capacity of 80 MW, and plans to scale up to 150 MW, this isn’t a symbolic gesture—it’s a full-blown infrastructure commitment to cutting-edge tech. That kind of capacity isn’t just significant for storage—it’s what powers today’s generative AI models, high-load health tech applications, fintech risk engines, defence simulations, and much more.

Crucially, the park is expected to attract over INR 2,000 crore in investments, creating a ripple effect of development and technological growth in the region. According to the government, it could generate 500 direct and 1,500 indirect jobs, opening up opportunities for engineers, analysts, cybersecurity experts, AI trainers, and support staff.

A Strategic Shift for Chhattisgarh—and India

For Chhattisgarh, a state traditionally known for minerals and agriculture, this pivot to AI is both symbolic and strategic. It sends a strong message: innovation is no longer confined to metro cities.

The timing is just right. India is witnessing a rapid AI adoption across sectors—from healthcare and logistics to agriculture and defence. And states like Chhattisgarh are now stepping forward to not just use AI but become its enablers.

Already, the state is experimenting with blockchain to secure land records in Dantewada, a district often in the news for different reasons. Now, with this AI data park, the state is building on that momentum and setting up infrastructure that could support deep tech, startups, and enterprise innovation.

India’s AI and Data Centre Race is Heating Up

Chhattisgarh’s move comes at a time when other states are also ramping up their data centre infrastructure to support AI development.

• In Telangana, Japanese IT service major NTT DATA and AI cloud startup Neysa Networks recently announced a massive INR 10,500 crore investment to set up an AI data centre cluster in Hyderabad.

• In Maharashtra, Blackstone and Panchshil Realty joined hands with the MIDC to develop data centres involving an investment of $3 billion (~INR 26,000 crore).

This flurry of activity is not surprising. India’s data centre market is projected to grow from $4.5 billion in 2023 to $11.6 billion by 2032, according to the Economic Survey 2024-25. That’s a compound annual growth rate (CAGR) of 10.98%—a clear signal of where the digital economy is headed.

In this race, Chhattisgarh is now emerging as an unlikely but significant player.

A Boon for Startups and Emerging Tech

The data centre park’s capabilities are tailored not just for established corporations but for India’s fast-growing startup ecosystem, especially in AI, health tech, defence, and fintech. For startups struggling to find affordable, scalable GPU computing power—or data sovereignty for sensitive AI training—this project could be a game changer.

What’s more, the park’s SEZ status could provide tax benefits, infrastructure subsidies, and regulatory ease for tech companies looking to set up operations near the facility. This might just be the spark that sets off an innovation cluster in central India.

Is Chhattisgarh the New Tech Frontier?

While the project is still in its early stages, the signals are clear: Chhattisgarh wants to lead from the front. With this AI-based data centre park, it is not only embracing the digital economy—it is betting big on it.

For a country that is aspiring to become an AI superpower, decentralising innovation and infrastructure is key. And perhaps, Nava Raipur will soon be known not just for government buildings and planned urban layouts, but as a next-gen tech hub powering India’s AI ambitions.