India’s First AI Special Economic Zone to Be Set Up in Nava Raipur with ₹1,000 Crore Investment
The AI SEZ will be built by Indore-based RackBank Datacenters, a carbon-neutral data center company. It will have advanced facilities for AI research, development, and use.
New Delhi: In a major step towards positioning India as a global technology hub, the country’s first artificial intelligence-focused special Eeconomic zone (SEZ) is set to come up in Chhattisgarh’s capital city Nava Raipur.
The project, to be developed by Indore-based carbon-neutral data centre RackBank Datacenters Pvt. Ltd., will involve an investment of ₹1,000 crore and is designed to house state-of-the-art infrastructure for AI research, development, and deployment, the Chhattisgarh government said, citing a commerce ministry order.
Spread across six acres, the RackBank Data Center SEZ will include a 1.5 lakh square foot facility equipped with advanced servers and systems capable of powering AI technologies and large-scale digital operations. The zone is envisioned as a digital nerve centre for India, with plans to develop four high-density data centres with a combined capacity of 80 megawatts—sufficient to support digital infrastructure across multiple states.
“The SEZ will benefit from tax exemptions and regulatory relaxations under the SEZ framework, providing an enabling environment for global and domestic firms to carry out cutting-edge AI development and data-driven innovation,” the statement said.
The AI SEZ is expected to house offices for major global tech companies like Google, OpenAI, Microsoft, and Meta. For the first time, India won’t just be using AI services made in other countries—it will also become a place where these services are created, stored, and delivered on a large scale.
The most transformative impact of the project, however, may be social. It is expected to allow young people from remote districts such as Kanker, Sukma, Bilaspur, and Dantewada to settle in Raipur and access world-class job opportunities, reducing the need to migrate to metropolitan cities like Bengaluru or seek employment overseas.
RackBank CEO Narendra Sen said the data centre will offer a range of roles—from IT engineers and data specialists to cybersecurity officers and network managers. The company plans to collaborate with ITIs, engineering colleges, and polytechnic institutes across Chhattisgarh to run tailored training programmes that prepare students for employment in the sector.
So far, India has officially approved 423 Special Economic Zones (SEZs), and 270 of them are currently active, according to the commerce ministry. These SEZs are located all over the country and support many industries like IT, biotechnology, pharmaceuticals, textiles, engineering, and manufacturing.
The SEZ policy, introduced in 2005 under the SEZ Act, aims to promote exports, attract foreign investment, create employment, and boost overall economic activity by offering tax incentives, simplified procedures, and infrastructure support.
Most of the operational SEZs are located in Tamil Nadu, Karnataka, Telangana, Maharashtra, and Gujarat. These states have used SEZs to bring in large investments, mainly in IT and manufacturing sectors.
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