Sarvam AI to invest Rs10,000 crore in Sovereign AI Park in Tamil Nadu

The Tamil Nadu government on Tuesday signed a memorandum of understanding (MoU) with Bengaluru-based Sarvam AI to establish India’s first full-stack Sovereign AI Park, a landmark project involving an investment of around Rs10,000 crore over the next five years.The proposed Sovereign AI Park will include dedicated data centres designed to exclusively host government data and is expected to generate around 1,000 high-skilled, deep-tech jobs. The initiative is being positioned as a foundational step towards building a robust, ethical and inclusive artificial intelligence ecosystem rooted in public interest.
According to the state government, the park will be a first-of-its-kind, purpose-built district integrating AI compute infrastructure, secure data frameworks, model research laboratories and AI innovation clusters. It will also house a dedicated Institute for AI in governance. The full-stack system is designed to ensure that data, models and compute remain within the State’s trust boundary, enabling sovereign deployment of AI systems.Drawing inspiration from the historic Sangam academies that safeguarded and enriched Tamil civilisation, the Sovereign AI Park will also function as a modern Digital Sangam. It will focus on developing foundational Tamil-first AI models that connect classical vocabulary with contemporary use cases, embedding culture and context into every layer of digital intelligence.
The MoU was exchanged between Guidance Tamil Nadu Managing Director Darez Ahamed and Sarvam AI co-founder Pratyush Kumar in the presence of Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, Industries Secretary Arun Roy and IIT Madras Director V. Kamakoti.“This demonstrates our strategic commitment to not only adopt but also shape the future of artificial intelligence from a people-first, state-led perspective, while enabling companies and startups that are pioneering the technology,” Industries Minister Rajaa said. He added that Sarvam AI will bring in the investment for the project, while the state government will provide land and necessary facilitation. Land has been identified near IIT Madras for the proposed park, and the data centre capacity created could also be used by other states to host their data.
IIT Madras Director V. Kamakoti said artificial intelligence would define the next generation of jobs, much like manufacturing and information technology did in previous decades. “By anchoring sovereign AI infrastructure and frontier research in Tamil Nadu, students and researchers from the State will be enabled to become global creators of AI, not just consumers. This initiative aims to convert Tamil Nadu’s talent strength into long-term economic leadership,” he said.Sarvam AI co-founder Pratyush Kumar said the partnership aims to move AI from experimentation to large-scale real-world deployment. “By bringing together computers, researchers, startups, enterprises and government under one Sovereign AI Park, Sarvam AI, along with the Tamil Nadu Government, is set to create the conditions for intelligence to move from experimentation to real-world impact at national scale,” Kumar said.Sarvam AI, which focuses on making generative AI accessible for Bharat, said the project would position Tamil Nadu as a national hub for sovereign, responsible and culturally grounded AI development.