Gujarat Unveils Data Centre Policy, Eyes ₹6 Lakh Crore Investment in Digital Infrastructure

The Gujarat government has released its first Data Centre Policy for 2026-2029, positioning itself to attract ₹6 lakh crore in investments and build 7.5 GW of data centre capacity. This makes Gujarat the first state in India to have a dedicated policy for this sector, signaling a shift in competition among states from traditional industries to digital infrastructure.

Data centres are physical facilities housing thousands of servers and networking equipment that process and store digital data for activities like online payments, streaming, and artificial intelligence. They require constant electricity, high-speed connectivity, and cooling systems. The policy offers incentives including capital subsidies, interest subsidies, power tariff support, SGST reimbursement, exemption from stamp duty and registration charges, and aid for captive desalination plants.

Chief Minister Bhupendra Patel launched the policy, aiming to leverage growth in AI, cloud computing, digital payments, and e-commerce. Gujarat already has strong renewable energy capacity—particularly solar and wind—which reduces operating costs for data centres that consume large amounts of electricity. The state also has industrial hubs like Dholera and GIFT City.

Currently, India generates nearly 20% of the world's data but holds only about 3% of global data centre capacity, compared to the US and China's combined 70%. Other states like Telangana, Andhra Pradesh, and West Bengal have also introduced policies, but Gujarat's is the first dedicated one. The policy aims to provide certainty on issues such as power supply, water, fibre connectivity, and land for expansion, making the state a competitive destination for digital infrastructure investment.