Intro
Gujarat launches Data Centre Policy 2026-29 to attract investments, strengthen AI infrastructure, boost digital economy and emerge as global hub
Gandhinagar
The Gujarat government on Thursday launched the Viksit Gujarat – Data Centre Policy 2026-29, aiming to position the state as a leading destination for data centres, artificial intelligence (AI) infrastructure and digital services. Chief Minister Bhupendra Patel unveiled the policy in Gandhinagar in the presence of senior ministers, government officials and representatives of the technology industry.
Science and Technology Department Secretary P. Bharathi described data as a critical resource powering digital payments, cloud computing, AI applications, online transactions, government services and innovation. She noted that although India generates nearly 20 per cent of the world’s data, it accounts for only around three per cent of global data centre capacity, underscoring the need for rapid expansion of digital infrastructure.
The policy offers several fiscal incentives to attract investments, including capital and interest subsidies, power tariff support, reimbursement of State GST and electricity duty, stamp duty exemptions, and assistance for desalination plants. It also provides non-fiscal incentives to encourage the establishment of hyperscale data centres and AI infrastructure in the state.
Bharathi announced that two cable landing stations are planned in Gujarat, while another project will be announced soon. The additional international connectivity is expected to strengthen Gujarat’s attractiveness as a preferred destination for global data centre investments.
According to the policy document, Gujarat has 69 GW of installed power capacity, including 47 GW generated from renewable sources, along with industrial hubs such as Dholera and GIFT City that can support large-scale digital infrastructure. The state aims to play a significant role in the expected global expansion of data centre capacity while contributing to its target of becoming a USD 3.5 trillion economy by 2047.
Science and Technology Minister Arjun Modhwadia said AI and quantum computing would drive the next phase of economic growth. He noted that Gujarat has already received proposals for around 10 GW of data centre capacity and plans to develop up to 8 GW within the state. Inviting domestic and international investors, he said strengthening data centre infrastructure would help Gujarat emerge as a national and global hub for the AI ecosystem.
