Rajkot: Gujarat has made a significant move toward becoming a leading centre for artificial intelligence (AI) and digital innovation by signing a memorandum of understanding (MoU) for a 250 MW green AI-ready data centre campus at Dholera Special Investment Region (SIR).
The agreement was signed in New Delhi during the India AI Impact Summit-2026, in the presence of Gujarat’s Science and Technology Minister Arjun Modhwadia.
Rs 25,000 Crore Investment to Boost AI Infrastructure
The MoU, signed between the Gujarat Government’s Department of Science and Technology and Larsen & Toubro VYOMA, outlines an investment of Rs 25,000 crore. The data centre campus is expected to be operational by 2028.
Officials said the project aims to develop a high-scale, environmentally sustainable data centre capable of supporting cloud computing, advanced analytics, and AI-based services.
“The establishment of this data centre will enhance Gujarat’s position as a hub for AI infrastructure and digital governance,” officials added.
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Alignment with IT/ITeS Policy and Sustainable Digital Growth
The project aligns with the state’s IT/ITeS Policy (2022–27) and supports the development of a sustainable digital ecosystem. The Dholera SIR campus is expected to attract high-impact investments, promote innovation-led growth, and generate significant employment across construction, commissioning, and long-term operations.
Officials note that the wider ecosystem development associated with the project will also create indirect employment and strengthen Gujarat’s role in India’s digital transformation.
Detailed Assessment and Government Support
Under the MoU, L&T VYOMA will carry out a detailed assessment of land suitability, infrastructure readiness, availability zones, and sustainability parameters. The Gujarat government will facilitate the project through its departments, providing a structured framework for smooth implementation.
Supporting India’s MANAV AI Vision
The initiative follows Prime Minister Narendra Modi’s ‘MANAV’ vision for artificial intelligence, announced at the India AI Summit. The vision emphasizes moral and ethical AI systems, accountable governance, national data sovereignty, and accessible technology.
PM Modi highlighted that AI should focus on augmenting human capabilities, rather than just making machines intelligent.
Gujarat’s Commitment to AI and Digital Governance
Gujarat Chief Minister Bhupendra Patel has strengthened the state’s commitment to AI, allocating over Rs 850 crore in this year’s budget for AI and digital governance initiatives.
Officials said the MoU with L&T VYOMA marks a crucial step in building world-class AI-ready digital infrastructure in Gujarat, positioning the state at the forefront of India’s AI sector while promoting sustainable and innovation-driven development.
