Tamil Nadu Teams Up With Sarvam AI to Build ₹10,000 Cr Sovereign AI Park

The Tamil Nadu government has signed an MoU with Sarvam AI to set up India’s first full stack Sovereign AI Park in Chennai, committing an initial investment of ₹10,000 crore to create a state controlled AI ecosystem where data, models and computing infrastructure stay within a trusted boundary.

The agreement was exchanged on January 13 in the presence of chief minister MK Stalin, industries minister TRB Rajaa, senior government officials and Sarvam AI co-founder Pratyush Kumar.

According to the state government, the project is expected to generate around 1,000 high skilled jobs across AI research, infrastructure engineering and governance focused technology roles.

The proposed Sovereign AI Park will be built as a dedicated district that brings together large scale AI computing infrastructure, secure data frameworks, model research labs and innovation clusters. It will also host a specialised Institute for AI in Governance, which will focus on building and deploying AI systems for public sector use while meeting data security and ethical requirements.

The park is being designed as a full stack environment where data storage, model training and AI deployment will all take place within Tamil Nadu’s jurisdiction. 

Officials said this approach is aimed at supporting AI applications across education, agriculture, healthcare and citizen services without exposing sensitive data outside the state controlled framework.

Previously, Sarvam AI was selected under the IndiaAI Mission to build India’s first sovereign large language model and has been given access to high-performance computing resources to support that effort. 

According to reports, the foundational model would be released next month at the India AI Impact Summit 2026. These models will be trained and deployed entirely within India and will follow the country’s regulatory and data governance rules.