The Maharashtra government and the Tata Group are working to speed up the development of a proposed AI Innovation City near Navi Mumbai International Airport. Spread across around 300 acres, the project is planned as a major hub for artificial intelligence and related technology industries.
Time-Bound Roadmap for Project
Kaustubh Dhavse, Chief Advisor to Maharashtra Chief Minister Devendra Fadnavis, said a time-bound roadmap is being put in place to accelerate the project.
The proposed development is expected to bring together several emerging technology segments and strengthen Maharashtra’s position in India’s digital infrastructure landscape.
AI, HPC and Semiconductor Ecosystem
The Innovation City is planned to include large-scale AI data centres, high-performance computing (HPC) facilities, semiconductor-related activities and global capability centres (GCCs).
The Tata Group is expected to invest around US$11 billion in the project, which was initially announced by Chief Minister Fadnavis in January 2026.
Maharashtra Targets 5.7 GW Data Centre Capacity
Maharashtra is targeting 5.7 GW of data centre capacity by 2032 as it looks to expand its digital infrastructure base.
The state has also set an ambitious economic target of growing from an estimated US$660 billion economy to US$1 trillion by 2030, with technology and infrastructure expected to play an important role.
Renewable Energy Push
The state is simultaneously working to increase the share of renewable energy in its power supply, with a target of 52% of total power supply from renewable sources.
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This transition is particularly important as AI facilities and data centres require large amounts of reliable electricity.
Challenges for Data Centre Expansion
While Mumbai and the wider Maharashtra region offer strong connectivity and an established technology ecosystem, the wheeling levy on renewable energy has emerged as a potential concern for data centre developers.
As competition for AI and data centre investments grows across India, Maharashtra’s ability to provide competitive power costs, renewable energy access and infrastructure will be important to the success of its planned AI ecosystem.