Gujarat notifies Data Center Policy 2026-29, targets 7.5 GW Green AI capacity
Gandhinagar, August 7
The Gujarat government on Friday notified the Viksit Gujarat Data Centre Policy 2026-29, aiming to establish the state as a leading hub for hyperscale Green AI data centres and next-generation digital infrastructure.
The policy targets the creation of 7.5 GW of hyperscale Green AI data centre capacity in Gujarat to meet the growing demand for artificial intelligence, cloud computing, high-performance computing and digital services.
The initiative is aligned with the vision of Viksit Bharat 2047 and seeks to strengthen India's digital economy by developing a future-ready digital infrastructure ecosystem, the state government said.
The state highlighted its existing advantages, including nearly 74 GW of installed power capacity, a strong renewable energy ecosystem, extensive optical fibre connectivity and industrial infrastructure, making it an attractive destination for hyperscalers, cloud service providers, AI firms and digital infrastructure developers.
The policy also focuses on developing Dholera Special Investment Region (SIR) as one of the world's largest hyperscale Green AI data centre hubs, leveraging its planned infrastructure and sustainable development model.
Under the policy, eligible data centre projects will be required to source at least 51 per cent of their operational electricity consumption from renewable and green energy sources, reinforcing the state's focus on sustainable digital infrastructure.
To attract investments, the policy provides fiscal incentives including capital subsidy, interest subsidy, power tariff subsidy, reimbursement of electricity duty, exemption from stamp duty and registration fees, SGST reimbursement and financial assistance for setting up captive desalination plants.
The government has also introduced non-fiscal measures to improve ease of doing business, including streamlined approvals, flexible building regulations, additional Floor Space Index (FSI), and coordinated support for power, water connectivity and statutory clearances.
Through the policy, Gujarat aims to attract domestic and global investments, create high-value employment opportunities, strengthen India's digital sovereignty and position itself as a key destination for AI and cloud infrastructure.
The state government has invited global hyperscalers, cloud service providers, AI companies, technology enterprises and institutional investors to participate in building India's digital infrastructure ecosystem from Gujarat.
— ANI
Reader Comments
The 51% renewable energy requirement is a very thoughtful addition. We need sustainable growth, especially with AI consuming so much power. Kudos to Gujarat for balancing development with environmental responsibility!
Interesting policy. But I wonder if smaller states can compete with Gujarat on this. The incentives look attractive, but implementation and ease of doing business will be key. Let's see how the execution pans out.
This is what we need to see from all states! Viksit Bharat 2047 is not just a slogan, it's a roadmap. Gujarat is setting an example for others to follow. 👏
High-value jobs and digital sovereignty - this is exactly the kind of forward-looking policy we need. Especially the focus on Green AI, using renewable sources for such power-hungry infrastructure is the smart way forward.
Dholera has been in the plans for a while now. Great to see it finally becoming a focal point for something this ambitious. I hope the global hyperscalers are paying attention and will invest here! 🇮🇳
The incentives package looks good, but I'm curious about how they'll ensure the 51% renewable energy requirement is enforced. Monitoring is often a challenge in such projects, hope Gujarat has a solid plan
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