Gujarat unveils its first Data Centre Policy, targeting ₹6 lakh crore investments, 7.5 GW capacity, AI growth, renewable energy, and hyperscale infrastructure.

The Gujarat Data Centre Policy (2026-29) marks the State's first dedicated roadmap for attracting hyperscale digital infrastructure investments, targeting ₹6 lakh crore in investments and 7.5 GW of data centre capacity. Launched by Chief Minister Bhupendra Patel, the policy offers capital subsidies, power tariff support, SGST reimbursement, electricity duty exemptions and incentives for desalination plants.

Designed to strengthen Gujarat's position in AI, cloud computing, digital payments and data-based industries, the initiative also promotes green energy adoption and positions Dholera as a major digital infrastructure hub.

Chief Secretary M.K. Das -

"Gujarat is the first state to bring this policy. We are confident it will attract investments of ₹6 lakh crore, create 7.5 GW of data centre capacity and generate significant employment,"

Investment Incentives Strengthen Digital Infrastructure

The policy introduces a comprehensive package of fiscal and non-fiscal benefits to attract global hyperscale operators. Eligible projects in Dholera can receive capital subsidies, interest subsidies for up to ten years, ₹1 per unit power tariff support for 20 years, electricity duty reimbursement and exemptions from stamp duty and registration charges.

Financial support for captive desalination plants also addresses the sector's significant water requirements while supporting sustainable smart infrastructure progress.

AI Growth Drives Gujarat's Data centre Ambitions

The Gujarat government said the policy aligns with rising demand for AI infrastructure, cloud computing, digital payments, electronics manufacturing and e-commerce. Officials noted that although India generates nearly 20 percent of global data, it hosts only around 3% of worldwide data centre capacity, creating major growth opportunities.

Gujarat's renewable energy resources, industrial ecosystem, cable landing stations and logistics network are expected to strengthen its competitiveness against Maharashtra, Telangana, Tamil Nadu and Andhra Pradesh.

Dholera Emerges as the Centerpiece

Dholera has been identified as the primary destination for hyperscale investments, supported by the upcoming airport, proposed semi-high-speed rail connectivity and expanding international cable infrastructure. The policy also mandates that at least 51 percent of electricity consumed by data centres must come from green energy sources, strengthening Gujarat's focus on sustainable digital infrastructure.

Key Highlights

  • Targets ₹6 lakh crore digital infrastructure investments by 2029.

  • Plans development of 7.5 GW data centre capacity.

  • Offers 20-year power tariff and electricity duty incentives.

  • Requires minimum 51% renewable energy for operations.

  • Dholera positioned as future hyperscale data centre hub.

Thus, Business Fortune is of the view that Gujarat's ambitious policy could accelerate India's AI infrastructure growth while strengthening its digital economy.

FAQs

What is the Gujarat Data centre Policy?

It is Gujarat's first dedicated policy promoting hyperscale data centre investments between 2026 and 2029.

How much investment does the policy target?

The State aims to attract investments worth ₹6 lakh crore.

Why is Dholera important under the policy?

Dholera is being developed as Gujarat's primary hyperscale data centre and digital infrastructure hub.

What industries will benefit?

AI, cloud computing, digital payments, e-commerce, electronics manufacturing and related technology sectors.

What sustainability requirement does the policy include?

Data centres must source at least 51% of their electricity from green energy.