Chhattisgarh strengthens digital transformation with AI data centre park

In a major boost to India’s digital sector, Chhattisgarh Chief Minister Vishnu Deo Sai inaugurated the nation’s first Artificial Intelligence-Aided Data Centre Park in Nava Raipur. Complemented by a 2.7-hectare Special Economic Zone (SEZ) dedicated exclusively to AI services, the facility will be operated by RackBank Datacenters Private Limited. The initiative marks a significant milestone in Chhattisgarh’s journey towards technological self-reliance and digital transformation, with an estimated investment of Rs 1,000 crore over the next two years.

The 13.5-acre facility is designed to accommodate up to 100,000 graphics processing units (GPUs). Within the Chhattisgarh SEZ, an additional 2.7 hectares have been earmarked to deliver high-quality yet affordable services.

The digital foundation for expansion and advancement

Envisioned as the digital backbone of the state’s technological and economic growth, the data centre aims to be more than just a storage facility. Officials have positioned it as a catalyst for a new era of progress. With AI-powered solutions in agriculture and education, the project has the potential to significantly improve the lives of Chhattisgarh’s farmers, youth, and tribal communities.

The AI Data Centre Park will be constructed in four phases. Phase one will provide an initial capacity of 80 megawatts (MW), while phase two will expand this to a scalable 160 MW. The facility will incorporate RackBank’s proprietary Varuna liquid immersion and direct-to-chip liquid cooling systems, which are expected to boost energy efficiency and reduce cooling costs by up to 70%.

Speaking to Voice & Data, Jaideep Ghosh, former Partner at KPMG India, commented,“This marks a pivotal step in enhancing Chhattisgarh’s stature in the technology sector while contributing to India’s broader National AI Mission. To unlock the full potential of this initiative, it's critical to ensure affordable computing resources, especially for start-ups and emerging businesses that rely on such infrastructure to innovate and grow. Success will hinge on effective implementation, the ability to attract strong partners, foster strategic collaborations, and secure long-term investments to drive sustainable development in the region’s digital and AI ecosystem.”

Chhattisgarh is also prioritising the development of a knowledge-based economy through initiatives such as Data AI Clubs in schools and a strong focus on digital learning. The government’s vision is clear: by strengthening public resource management and boosting economic activity, AI will become a central pillar of inclusive growth. The dedicated SEZ for AI services is expected to attract both domestic and international tech firms, positioning Nava Raipur as a hub for innovation and entrepreneurship.

At the launch, Chief Minister Shri Vishnu Deo Sai stated, “Chhattisgarh is rapidly emerging as India’s next major IT hub. Today marks a critical milestone in our digital transformation journey. The inauguration of RackBank’s state-of-the-art AI Data Centre Park is a significant step towards building a digital and knowledge-driven economy. Supported by our progressive industrial policy, this initiative will enhance our digital infrastructure, attract investments, encourage innovation, and create high-quality employment. Chhattisgarh is proud to be at the forefront of shaping India’s technological and AI future.”

Jaspreet Singh, Partner at Grant Thornton Bharat, further explained the broader economic implications, he said, “Setting up an AI data centre enhances digital adoption by providing essential infrastructure. It supports cutting-edge AI technologies and digital services, which in turn foster innovation, productivity, and growth.

Key impacts include:

Enhanced digital infrastructure: High-capacity computing enables the efficient deployment of AI across sectors.

Job creation and skills development: These centres generate both direct and indirect employment, enhancing local talent.

Boosted GST revenue and public services: Tax income from data centres supports education, infrastructure, and community programmes.

Increased investment and innovation: The establishment of such centres signals a commitment to technology, attracting digital businesses.

Greater AI accessibility: Through cloud platforms, AI becomes available to organisations of all sizes, accelerating digital transformation.”

Promoting socioeconomic progress and rural development

The government plans to use the facility to roll out tailored AI technologies aimed at improving education and productivity in rural areas. In agriculture, AI tools will aid in crop management and precision farming. In education, integration with AI is expected to enhance school administration, teaching strategies, and infrastructure through partnerships with educational firms. Chhattisgarh’s first data centre campus, this new AI Data Centre Park is expected to create approximately 200 jobs within five years, with plans to scale up to 500 employees.

NSN Murty, Partner and Leader of Government and Public Services (Technology & Transformation) at Deloitte India, also spoke with Voice & Data regarding the significance of the project. He noted, “As a relatively young state, Chhattisgarh has made commendable progress in building robust systems over the past decade,ranging from land records and property tax to surveillance and traffic management. The Naya Raipur Development Authority, including Nava Raipur Atal Nagar, has established a strong technological foundation, with infrastructure like a command and control centre supported by firms such as Schneider Electric.

With AI now on the rise, Chhattisgarh stands at a strategic inflection point. This investment can support the state’s transformation in three critical ways:

Leapfrogging Modernisation: AI use cases can help Chhattisgarh outpace other regions in its digital journey while keeping infrastructure costs low.

Alignment with the India AI Mission: The initiative aligns well with national objectives that promote AI in agriculture, healthcare, and education. Chhattisgarh is well-placed to pilot and scale solutions rapidly, unlike many other states that still lack adequate infrastructure.

Employment and Skill Development: With a strong academic base in engineering and management around Nava Raipur, the state can develop a skilled workforce to support AI initiatives.

In addition to these, Chhattisgarh’s financial prudence gives it a distinct edge. While not every state may find it easy to replicate this model, Chhattisgarh has acted intelligently and decisively, establishing itself as a leader in India’s AI and digital transformation landscape.”