The Gujarat government has officially launched the Viksit Gujarat Data Centre Policy 2026-29, a strategic initiative aimed at transforming the state into India’s premier destination for hyperscale and colocation data centres. Unveiled by Chief Minister Bhupendra Patel, the policy seeks to attract approximately Rs 6 lakh crore in investments and build a total capacity of 7.5 gigawatts (GW). By providing a comprehensive framework of fiscal and non-fiscal incentives, the state government intends to anchor India’s growing digital economy and attract global cloud service providers to the region.
This policy arrives as India experiences a surge in data generation, yet currently holds only a small fraction of global data centre capacity. Gujarat aims to bridge this gap by fostering an ecosystem that supports artificial intelligence, cloud computing, and high-performance computing. The state government has identified Dholera and GIFT City as key industrial hubs for these developments, leveraging existing strengths in renewable energy and infrastructure to provide a competitive environment for investors.
To ensure sustainability, the policy mandates that at least 51% of the electricity used for core data centre operations must be sourced from green and renewable energy. Additionally, developers are required to utilize water from desalination plants, addressing potential resource constraints. The Department of Science and Technology will act as the nodal agency, offering streamlined approvals, tax exemptions, and power tariff support to encourage rapid project implementation.
With 14 companies already expressing interest, the state is positioning itself to compete with established hubs like Maharashtra, Telangana, and Tamil Nadu. The initiative is expected to create high-value jobs and develop a skilled workforce in fields such as cloud engineering and cybersecurity. As the policy takes effect, the focus will shift to the practical execution of these large-scale infrastructure projects and their long-term impact on the state’s digital landscape.