Maharashtra and Tata Group working to accelerate AI Innovation City near Mumbai

The capital of Maharashtra, Mumbai at night | Image Courtesy: Pexels
September 4, 2026 at 9:29 PM GMT+8

The government of the Indian state of Maharashtra and Tata Group are working to expedite the development of a so-called Innovation City across 300 acres near Navi Mumbai International Airport that is conceived as a hub for artificial intelligence and related industries.

As reported by The Free Press Journal, Kaustubh Dhavse, Chief Advisor to Maharashtra Chief Minister Devendra Fadnavis, speaking at the 6th Real Estate & Infrastructure Investors’ Summit (REIIS) 2026, said that the government is working on a time-bound roadmap to accelerate the project’s development.

“The infrastructure that Maharashtra has created gives us an opportunity to take Mumbai, Maharashtra and India to the next level. We now have the momentum; the task is to execute at scale,” said Dhavse.

According to ET DataCentres, Dhavse told the summit that Maharashtra is targeting a data center capacity of 5.7 GW by 2032 as part of the state’s ambition to grow the economy from a value of US$ 660 billion to US$ 1 trillion by 2030.

Talk of an Innovation City being stood up in Maharashtra goes back to February 2025. At the time, Fadnavis said that the state was in touch with five potential Global Capability Centers (GCC). By January 2026, the Chief Minister announced that Tata Group would invest US$ 11 billion in the project.

The proposed Innovation City will be home to large-scale AI data centers, high-performance computing facilities, semiconductor-related activities, and the aforementioned GCCs. Fadnavis said in January that Maharashtra is transitioning its energy grid to ensure 52 percent of its total power is supplied by renewable sources.

India’s installed data center base is expected to grow from 4.48 GW in 2025 to 5.45 GW in 2026 and 15.21 GW by 2031, according to Mordor Intelligence. While Maharashtra aims to be a digital infrastructure hub, as the research outfit highlights, a wheeling levy placed on renewable energy is pushing buildouts south, despite Mumbai’s connectivity edge.