UP govt bets big on tech push, raises IT allocation by 76%

Lucknow: In an aggressive push towards becoming a technology powerhouse, the Uttar Pradesh govt increased its allocation for the IT and electronics sector by 76%, proposing an outlay of Rs 2,059 crore in the 2026–27 Budget presented by finance minister Suresh Khanna. The Budget placed strong emphasis on skilling and digital infrastructure. Under the India AI Mission, AI labs will be set up in 49 ITIs across the state, while Rs 32.82 crore was earmarked for establishing an AI Centre of Excellence and India AI Data Labs in Uttar Pradesh. The move aims to equip youth with advanced technological skills and strengthen the state's innovation ecosystem. To address rising digital threats, a new Cyber Security Operations Centre was proposed with an allocation of Rs 95.16 crore. Officials said the centre will bolster cyber resilience as digital services and e-governance platforms expand across the state. UP is also betting big on data centres, targeting Rs 30,000 crore in investments to develop eight data centre parks with a total capacity of 900 MW. So far, eight projects, six parks and two standalone units, have received letters of comfort, translating into investments of around Rs 21,342 crore and 644 MW capacity. The state accounts for 65% of India's mobile phone manufacturing and 55% of electronics component units, with electronics exports touching Rs 44,744 crore. The enhanced allocation is seen as a decisive step towards a technology-led growth model.