The Tata Group is set to invest USD 11 billion to develop a world-class “Innovation City” near the upcoming Navi Mumbai International Airport, as India seeks to strengthen its global position in artificial intelligence and semiconductor services.

Speaking on the sidelines of the World Economic Forum in Davos, Maharashtra Chief Minister Devendra Fadnavis said international investors are showing strong interest in participating in the project. The investment will include the development of large-scale data centre infrastructure, he added.

Maharashtra contributes more than 10 per cent of India’s gross domestic product, with Mumbai hosting major corporate groups such as Reliance Industries and the Tata Group, the country’s primary stock exchanges, and the Hindi film industry. However, the state faces challenges from high unemployment even as it pursues an ambitious USD 30 billion plan to modernise Mumbai’s infrastructure.

The location of the proposed Innovation City adjacent to the Navi Mumbai International Airport, a flagship project developed by the Adani Group, is expected to create strong synergies between global connectivity and high-technology industries.

The investment comes amid accelerating global spending on artificial intelligence infrastructure. Technology giants such as Microsoft, Alphabet and Amazon are investing billions of dollars in data centres to expand AI capabilities worldwide. According to consultancy McKinsey & Co, global demand for data centre capacity could more than triple by 2030, reaching an annual level of 219 gigawatts.