We are confident it will attract investments of ₹6 lakh crore, create 7.5 GW of data centre capacity and generate significant employment,” Chief Secretary M K Das said in Gandhinagar where chief minister Bhupendra Patel unveiled the policy.
The state is also strengthening the digital infrastructure required to support large-scale investments.
India, despite generating nearly 20% of the world’s data, has only about 3% of global data centre capacity.
While the US has around 30 GW of installed data centre capacity, India currently has only 2-3 GW, with the pipeline expected to reach around 8 GW.
The policy also mandates that at least 51% of the electricity consumed for core data centre operations be sourced from green and renewable energy, aligning the state’s digital infrastructure ambitions with its clean energy objectives.
Betting big on India’s rapidly expanding digital infrastructure opportunity, the Gujarat government on Thursday unveiled its maiden Data Centre Policy 2026-29, targeting ₹6 lakh crore of investments and the creation of 7.5 GW of data centre capacity, as it seeks to position the state as the country’s leading hub for hyperscale data centres, cloud infrastructure and AI-driven digital services.
The policy offers a comprehensive package of fiscal incentives, including capital subsidy, interest subsidy, power tariff subsidy, SGST reimbursement, electricity duty reimbursement, support for desalination plants and stamp duty exemptions. It also provides non-fiscal incentives such as fast-track approvals, additional floor space index (FSI), relaxations in building norms, open access to power, assured electricity supply and water availability to accelerate project execution.
“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,” Chief Secretary M K Das said in Gandhinagar where chief minister Bhupendra Patel unveiled the policy.
The state is also strengthening the digital infrastructure required to support large-scale investments. 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 shortly, significantly enhancing international connectivity and making the state more attractive for global cloud and data centre operators.
“Globally there are around 12,000 data centres, with the United States and China accounting for nearly 70% of the world’s capacity. India, despite generating nearly 20% of the world’s data, has only about 3% of global data centre capacity. This represents a tremendous opportunity,” Bharati said.
Science and Technology Minister Arjun Modhwadia said India currently has only about 200 data centres, compared with nearly 5,500 in the United States and around 500 in the United Kingdom. While the US has around 30 GW of installed data centre capacity, India currently has only 2-3 GW, with the pipeline expected to reach around 8 GW.
“I am happy to say that Gujarat has already received proposals equivalent to 10 GW. These are not just for data centres but cover the entire ecosystem,” Modhwadia said, underscoring the state’s ambition to emerge as a preferred destination for digital infrastructure investments.
The policy comes as Gujarat has witnessed a surge in interest from hyperscale operators, AI infrastructure developers and cloud service providers, with projects announced across GIFT City, Jamnagar, Dholera and the Ahmedabad region. State officials expect the new policy, coupled with expanding connectivity and abundant renewable energy availability, to accelerate investments and strengthen Gujarat’s position in India’s rapidly evolving digital economy.
The incentives under the policy will be available only for projects with a minimum approved installed IT load of 150 MW, and the overall incentive framework will apply to projects contributing towards the state’s target of 7.5 GW of installed data centre capacity. Total financial assistance under the policy has been capped at 75% of eligible fixed capital investment, with incentives to be disbursed over a period of up to 20 years. The policy also mandates that at least 51% of the electricity consumed for core data centre operations be sourced from green and renewable energy, aligning the state’s digital infrastructure ambitions with its clean energy objectives.
The policy offers an extensive package of fiscal and non-fiscal incentives aimed at attracting large hyperscale investments. Fiscal incentives include a 2.5% capital subsidy on eligible fixed capital investment for projects in the Dholera region, interest subsidy of up to 4% for 10 years (subject to an annual cap of ₹25 crore), ₹1 per unit power tariff subsidy for 20 years, 100% reimbursement of electricity duty for 20 years, 100% exemption on stamp duty and registration charges, and reimbursement of SGST on plant and machinery, building infrastructure and eligible operational services for specified periods. The policy also provides additional support for captive desalination plants, offering assistance of 20% of eligible capital expenditure or ₹2 crore per MLD, subject to prescribed limits.
To ease project implementation, the policy also provides a series of non-fiscal incentives, including fast-track statutory approvals through a dedicated investor facilitation mechanism, additional floor space index (FSI), relaxed building norms, parking and height exemptions, rooftop installation of chillers, higher permissible ground coverage and simplified utility infrastructure norms. Data centre operators will also be allowed to procure electricity through open access, while the state has committed to facilitating dual power supply through independent transmission feeders, round-the-clock water availability and distribution licences wherever required. The operation and maintenance of data centres will also be treated as an Essential Service under the Gujarat Essential Services Maintenance Act.
Published on July 9, 2026
