In a landmark move to strengthen India’s artificial intelligence ecosystem, the Government of Tamil Nadu has signed a ₹10,000 crore Memorandum of Understanding (MoU) with Sarvam AI to establish the country’s first full-stack Sovereign AI Park in Chennai. The initiative marks one of India’s largest state-led investments in AI infrastructure and is expected to generate over 1,000 high-skilled deep-tech jobs, positioning Tamil Nadu as a national and global hub for sovereign, ethical, and locally governed AI systems.
The MoU was formalised on January 13 in the presence of Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, Industries Secretary Arun Roy, Guidance Tamil Nadu MD Darez Ahamed, IIT Madras Director Prof. V. Kamakoti, and Sarvam AI co-founder Pratyush Kumar.
A Full-Stack Sovereign AI Ecosystem
The proposed Sovereign AI Park will be developed as a purpose-built AI district featuring high-performance computing infrastructure, secure data frameworks, AI model research labs, innovation clusters, and a dedicated Institute for AI in Governance. Designed as a full-stack AI ecosystem, the park will ensure that data, compute, and AI models remain within Tamil Nadu’s trust boundary, enabling the deployment of secure and sovereign AI systems aligned with public interest and regulatory requirements.
“This initiative reflects Tamil Nadu’s strategic vision to not just adopt AI, but to shape its future through a people-first, state-led approach. With this project, the state will lead large-scale AI deployment across critical sectors such as education, healthcare, agriculture, and citizen services,” said Industries Minister T.R.B. Rajaa.
Strengthening India’s AI-Grade Infrastructure
According to Industries Secretary Arun Roy, the project places Tamil Nadu among a select group of global destinations offering AI-ready infrastructure and deep-tech talent within a single integrated ecosystem.
“The Sovereign AI Park positions Tamil Nadu as a premier destination for global technology investment, offering both AI-grade infrastructure and skilled talent at scale,” Roy said.
Tamil-First AI Models and the ‘Digital Sangam’ Vision
A defining feature of the project is its focus on building Tamil-first foundational AI models, inspired by the intellectual legacy of the ancient Sangam academies. Envisioned as a modern ‘Digital Sangam’, the initiative aims to integrate classical Tamil language and cultural context into next-generation AI systems, enabling inclusive and locally relevant AI innovation.
“Artificial intelligence will define the next generation of jobs, just as manufacturing and IT defined previous eras. By anchoring sovereign AI research and infrastructure in Tamil Nadu, students and researchers can emerge as global creators of AI technologies,” said Prof. V. Kamakoti, Director of IIT Madras.
Sarvam AI to Anchor the Technology Stack
Sarvam AI, selected under the Government of India’s IndiaAI Mission to build the country’s first sovereign large language model (LLM), will anchor the technology stack of the AI park. The company focuses on developing foundational AI models tailored for India’s linguistic diversity, scale, and governance needs.
“This partnership is about building AI that is trained, deployed, and governed in Tamil Nadu—for India and the world. By bringing together government, startups, researchers, enterprises, and computer infrastructure under one Sovereign AI Park, we are accelerating the transition from AI experimentation to real-world, national-scale impact,” said Pratyush Kumar, Co-founder of Sarvam AI.
With this ambitious initiative, Tamil Nadu is set to play a pivotal role in shaping India’s sovereign AI strategy, reinforcing its leadership in AI innovation, deep-tech job creation, digital governance, and ethical artificial intelligence.
