As artificial intelligence, cloud computing and digital services drive an unprecedented surge in demand for computing power, Gujarat has thrown its hat into the ring with one of India’s most ambitious data centre policies. The state government has unveiled the Viksit Gujarat Data Center Policy 2026–2029, setting an ambitious target of attracting Rs 6 lakh crore in investments and creating 7.5 GW of installed data centre capacity, positioning Gujarat as India’s next hyperscale digital infrastructure hub.
Download PDF: Viksit Bharat Data Centre Policy 2026-2029
The policy comes at a time when India’s data centre industry is entering a new growth phase. According to the policy document, the country’s installed data centre capacity has already expanded from around 350 MW in 2019 to nearly 1,030 MW in 2024, and is expected to exceed 2 GW by 2027. Over the past two years alone, global and domestic investors have committed nearly $32 billion towards data centre projects across India, underscoring the country’s emergence as a major digital infrastructure destination.
Gujarat wants to capture a sizeable share of this investment wave. Leveraging its strong power infrastructure, renewable energy leadership, industrial ecosystem, GIFT City, Dholera Special Investment Region and extensive fibre connectivity, the state aims to become the preferred destination for hyperscale cloud providers, AI infrastructure companies and colocation operators. The policy envisions Gujarat as a global hub for AI ready, green and sustainable data centres that can serve both domestic and international digital workloads.
To attract large investments, the government has rolled out a comprehensive package of fiscal and non fiscal incentives. These include power tariff subsidies for 20 years, 100% reimbursement of electricity duty, full exemption from stamp duty and registration fees, interest subsidies, SGST reimbursement, faster approvals, relaxed building norms and support for captive desalination plants in suitable locations. The policy also mandates that at least 51% of electricity consumed by data centres must come from renewable energy, reinforcing Gujarat’s push towards sustainable digital infrastructure.
With AI workloads expanding rapidly and hyperscale cloud companies looking for new capacity beyond traditional hubs, Gujarat’s latest policy signals the state’s intent to become a cornerstone of India’s digital economy. If the investment targets are achieved, the state could emerge as one of Asia’s largest destinations for AI and cloud infrastructure over the coming decade.
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