Gandhinagar: The Gujarat government has launched the Gujarat Data Center Policy 2026-29 to attract major investments in data centers, artificial intelligence (AI) infrastructure and digital services. The policy was unveiled by Chief Minister Bhupendra Patel at an event in Gandhinagar.
Deputy Chief Minister Harsh Sanghavi, Science and Technology Minister Arjun Modhwadia, Chief Secretary Manoj Kumar Das, senior government officials and representatives from the technology industry attended the launch event.
The new policy aims to position Gujarat as a leading destination for digital infrastructure development and support India’s growing technology-driven economy.
Gujarat Aims to Become India’s Digital Infrastructure Hub
Secretary of the Department of Science and Technology P. Bharathi said that the new policy will help create the infrastructure required for India’s expanding digital economy.
She highlighted that data has become one of the most valuable resources in the modern economy, powering:
- Digital payments
- Artificial intelligence models
- Cloud computing services
- Online transactions
- Government digital services
- Technology innovations
She noted that India generates nearly 20% of the world’s data, but its share in global data center capacity remains around 3%. Meanwhile, the United States and China together account for nearly 70% of global data center capacity.
The policy aims to bridge this gap by encouraging large-scale data center development in Gujarat.
Policy Offers Multiple Incentives for Data Center Investments
Under the Gujarat Data Center Policy 2026-29, data centers will be treated as strategic infrastructure.
The government will provide several financial and non-financial incentives, including:
- Capital assistance
- Interest subsidy
- Electricity tariff subsidy
- State Goods and Services Tax (SGST) reimbursement
- Electricity duty exemption
- Support for seawater desalination plants
- Stamp duty exemptions
These incentives are designed to create a competitive environment and attract both domestic and international technology companies.
Gujarat Strengthens Global Connectivity with Cable Landing Projects
The state government is also focusing on improving international digital connectivity.
P. Bharathi stated that Gujarat has planned two cable landing stations, with another project expected to be announced soon. These projects will strengthen the state’s global connectivity network and support international data movement.
With advanced connectivity infrastructure, Gujarat aims to become an important location for global technology companies.
Renewable Energy Advantage to Support Data Center Growth
According to the policy document, Gujarat has a total installed power capacity of 69 gigawatts, including 47 gigawatts from renewable energy sources.
The state’s renewable energy strength, along with industrial hubs such as Dholera and GIFT City, gives Gujarat a major advantage in attracting energy-intensive data center projects.
The policy also focuses on sustainable development, making green energy usage a key requirement for future data centers.
Data Centers Must Use 51% Green Energy Under New Policy
To promote environmental sustainability, the Gujarat government has introduced a mandatory green energy condition.
According to the policy, every new data center established in the state must source at least 51% of its total electricity consumption from renewable energy sources, including:
- Solar energy
- Wind energy
- Other environmentally friendly power sources
This move aims to reduce the environmental impact of data centers while supporting Gujarat’s clean energy goals.
Gujarat Targets 8 GW Data Center Capacity
Science and Technology Minister Arjun Modhwadia said that artificial intelligence and quantum computing will drive the next phase of technological development.
He described data as the “new oil” of the modern economy and highlighted the growing importance of digital infrastructure.
He stated that:
- The United States has around 5,500 data centers.
- The UK has more than 500 data centers.
- India currently has around 200 data centers.
- India’s installed data center capacity is approximately 2-3 gigawatts and may increase to around 8 gigawatts with upcoming projects.
Gujarat has already received proposals for around 10 gigawatts of data center capacity, reflecting strong investor interest.
The state government aims to develop up to 8 gigawatts of data center capacity in Gujarat and establish the state as a major AI and digital infrastructure hub.
Power and Grid Infrastructure to Be Upgraded
Since data centers require uninterrupted electricity supply, Gujarat has started strengthening its power transmission infrastructure.
Gujarat Urja Vikas Nigam Limited (GUVNL) is working on upgrading:
- Transmission networks
- Power substations
- Grid infrastructure
The government plans to significantly increase clean energy generation capacity in the coming years to ensure continuous green power availability for upcoming digital industries.
Policy Supports Gujarat’s Vision of a $3.5 Trillion Economy by 2047
The Gujarat Data Center Policy 2026-29 is part of the state’s long-term strategy to promote technology-led growth and contribute to India’s economic ambitions.
By combining renewable energy, advanced connectivity, industrial infrastructure and investment incentives, Gujarat aims to become a leading data center and artificial intelligence hub in India and globally.
Read also: Gujarat CM Bhupendra Patel Lays Foundation Stone for ₹127 Crore New IITE Campus in Gandhinagar
