The Gujarat Government has unveiled its first Data Centre Policy 2026-29, targeting ₹6 lakh crore in investments and 7.5 GW of installed data centre capacity.
The initiative aims to position the state as India's leading destination for hyperscale data centres, cloud infrastructure and AI-driven digital services.
The policy combines a wide range of financial incentives with faster project approvals.
Developers will be eligible for capital and interest subsidies, power tariff support, reimbursement of electricity duty and SGST, stamp duty exemption, and financial assistance for captive desalination plants. Overall financial assistance has been capped at 75% of eligible fixed capital investment, with benefits available for up to 20 years.
To accelerate project development, Gujarat will offer fast-track approvals, additional FSI, relaxed building norms, parking and height exemptions, rooftop chiller installations and simplified utility infrastructure.
The policy also allows open-access power procurement, dual electricity supply, assured water availability and distribution licences. Data centre operations and maintenance will be treated as an Essential Service.
Only projects with a minimum approved IT load of 150 MW will qualify for incentives.
The policy also requires 51% of electricity used for core operations to come from green and renewable energy.
Chief Secretary M K Das said Gujarat expects to "attract investments of ₹6 lakh crore, create 7.5 GW of data centre capacity and generate significant employment."
P Bharati, Secretary, Department of Science and Technology, said Gujarat will soon have two operational cable landing stations, with another project expected to be announced, strengthening global connectivity.
He noted that India generates nearly 20% of the world's data but has only 3% of global data centre capacity, calling it "a tremendous opportunity."
According to Science and Technology Minister Arjun Modhwadia, India currently has around 200 data centres, compared with 5,500 in the US and 500 in the UK. India's installed capacity stands at 2-3 GW, with the pipeline expected to reach 8 GW.
He added that Gujarat has already received proposals equivalent to 10 GW, covering "the entire ecosystem." Projects have already been announced across GIFT City, Jamnagar, Dholera and the Ahmedabad region, supported by expanding connectivity and renewable energy.
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The Data Centre Policy 2026-29 brings together investment incentives, digital infrastructure and sustainability measures to support Gujarat's long-term ambitions. Through the policy, the state aims to expand data centre capacity while strengthening its role in India's evolving digital economy.
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Published on: Jul 9, 2026, 4:31 PM IST
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