The establishment of the nation’s first artificial intelligence-focused special economic zone (SEZ) in Nava Raipur, the capital of Chhattisgarh, is a significant step in establishing India as a global center for technology.
The Chhattisgarh government said, citing a commerce ministry order, that the project, to be developed by Indore-based carbon-neutral data center RackBank Datacenters Pvt. Ltd., will cost ₹1,000 crore and be intended to house cutting-edge infrastructure for AI research, development, and deployment.
A 1.5 lakh square foot facility with cutting-edge servers and systems that can support AI technologies and extensive digital operations will be part of the six-acre RackBank Data Center SEZ. With plans to build four high-density data centers with a combined capacity of 80 megawatts—enough to power digital infrastructure across many states—the zone is intended to serve as India’s digital nerve center.
“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.
Leading international tech firms including Google, OpenAI, Microsoft, and Meta are anticipated to operate in the AI SEZ. For the first time, India will be a basis for creating, hosting, and delivering AI services at scale in addition to being a consumer of services created outside.
However, the project’s societal impact could be its most revolutionary. It should lessen the need for young people from far-flung areas like Kanker, Sukma, Bilaspur, and Dantewada to relocate to big cities like Bengaluru or look for work abroad by enabling them to reside in Raipur and have access to top-notch career prospects.
According to RackBank CEO Narendra Sen, the data center would provide a variety of positions, including network managers, cybersecurity officers, and IT engineers and data specialists. The business intends to work with engineering schools, polytechnic institutes, and ITIs throughout Chhattisgarh to provide specialized training programs that get students ready for jobs in the industry.
The Ministry of Commerce reports that as of right now, 423 SEZs have been officially sanctioned in India, with 270 of them now operating. These special economic zones (SEZs) are dispersed around the nation and serve a variety of industries, including as biotechnology, pharmaceuticals, textiles, engineering, information technology (IT), and multi-product manufacturing.
By providing tax breaks, streamlined processes, and infrastructural assistance, the SEZ policy—which was first implemented in 2005 under the SEZ Act—aims to encourage exports, draw in foreign investment, generate jobs, and increase overall economic activity.
Tamil Nadu, Karnataka, Telangana, Maharashtra, and Gujarat are home to the majority of the SEZs that are now in operation. SEZs have been used by these governments to attract significant investments, mostly in the industrial and IT industries.
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