Gujarat Unveils Ambitious Data Centre Policy, Targets ₹6 Lakh Crore Investment to Become India’s AI Infrastructure Hub
The Gujarat government has launched the ‘Viksit Gujarat – Data Centre Policy 2026–29’, unveiling an ambitious roadmap to position the state as India’s premier destination for hyperscale data centres, artificial intelligence infrastructure and cloud computing. The policy aims to attract investments worth ₹6 lakh crore and create up to 7.5–8 gigawatts of data centre capacity, making Gujarat one of the country’s largest digital infrastructure hubs.
Chief Minister Bhupendra Patel launched the policy in Gandhinagar, describing it as a key pillar of Gujarat’s strategy to lead India’s next phase of digital growth. The state government believes the initiative will strengthen cloud services, AI computing, digital governance, smart manufacturing and fintech while generating substantial employment and attracting global technology companies.
A major focus of the policy is to attract hyperscalers—global technology companies that operate massive cloud computing and AI infrastructure. Gujarat hopes to leverage its extensive power generation capacity, renewable energy ecosystem, submarine cable connectivity, industrial corridors and emerging technology hubs such as GIFT City and Dholera Special Investment Region (SIR) to compete with established data centre markets like Maharashtra, Tamil Nadu and Karnataka.
To lure investors, the state has announced an extensive package of fiscal incentives, including capital subsidies, interest subsidies on term loans, power tariff support, reimbursement of State GST and electricity duty, stamp duty exemptions, and assistance for desalination infrastructure. Non-fiscal incentives include expedited approvals through a single-window system, relaxed building regulations, additional Floor Space Index (FSI), assured electricity and water supply, and open access to power.
The policy also places significant emphasis on sustainability. New data centres will be expected to source at least 51% of their electricity from green energy, while water requirements are proposed to be met through desalination plants to reduce pressure on freshwater resources. The government says these measures are intended to balance rapid digital expansion with environmental responsibility as AI-driven infrastructure becomes increasingly energy intensive.
Officials believe the initiative comes at a crucial time as demand for AI computing, cloud storage and digital services accelerates globally. Gujarat has already secured major investments in AI-ready data centres, including large-scale projects planned in Dholera, and expects the new policy to further strengthen its position in India’s digital economy. If investment targets are achieved, the state could emerge as a leading destination for global cloud providers and AI companies seeking large-scale computing infrastructure in South Asia.
