Gujarat to Build 250 MW Green AI Data Centre at Dholera with Rs 25,000 Cr Investment

Gujarat has signed an MoU with Larsen and Toubro VYOMA to develop a 250 MW green AI-ready data centre campus at Dholera Special Investment Region with an investment of Rs 25,000 crore. The project, signed during the India AI Impact Summit-2026, aims to be operational by 2028 and will support cloud computing, analytics, and AI services. It aligns with the state's IT policy and Prime Minister Narendra Modi's 'MANAV' vision for ethical and inclusive artificial intelligence. The initiative is expected to generate significant employment and position Gujarat at the forefront of India's AI and digital transformation.

Key Points: Gujarat Signs MoU for 250 MW Green AI Data Centre at Dholera

  • Rs 25,000 crore investment
  • 250 MW green AI-ready facility
  • Expected operational by 2028
  • Aligns with state IT/ITeS Policy
  • Supports PM Modi's 'MANAV' AI vision
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Gujarat signs MoU for 250 MW green AI-ready data centre at Dholera SIR

Gujarat signs Rs 25,000 crore MoU for a 250 MW green AI-ready data centre at Dholera SIR, boosting state's digital infrastructure and AI hub ambitions.

"The establishment of this data centre will enhance Gujarat's position as a hub for AI infrastructure and digital governance - Officials"

New Delhi/Gandhinagar, Feb 20 Gujarat has taken a significant step towards becoming a leading hub for artificial intelligence and digital infrastructure with the signing of a memorandum of understanding for a 250 MW green AI-ready data centre campus at Dholera Special Investment Region.

The agreement was signed in New Delhi during the India AI Impact Summit-2026, in the presence of state Science and Technology Minister Arjun Modhwadia.

The MoU, concluded between the Gujarat Government's Department of Science and Technology and Larsen and Toubro VYOMA, outlines an investment of Rs 25,000 crore for the project, which is expected to be operational by 2028.

The project aims to establish 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 said.

They added that the project is aligned with the state's IT/ITeS Policy (2022-27) and supports the development of a sustainable digital ecosystem.

The proposed Dholera SIR campus is expected to attract high-impact investments, promote innovation-led growth, and create significant employment opportunities across construction, commissioning, and long-term operations.

The wider ecosystem development associated with the project is also projected to generate indirect employment and strengthen Gujarat's role in India's digital transformation.

Under the terms of the MoU, L and 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 implementation.

This initiative follows Prime Minister Narendra Modi's outline of India's 'MANAV' vision for artificial intelligence at the India AI Summit, which emphasises moral and ethical systems, accountable governance, national data sovereignty, accessible and inclusive technology, and valid and legitimate systems.

The Prime Minister highlighted that AI's potential lies in augmenting human capabilities rather than merely making machines intelligent.

Following this vision, Gujarat Chief Minister Bhupendra Patel has strengthened the state's commitment to AI, allocating more than Rs 850 crore in this year's budget for AI and digital governance initiatives.

Officials say the MoU with L and 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.

- IANS

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Reader Comments

P
Priya S
Rs 25,000 crore is a massive investment. While the vision is great, I hope the government ensures transparency in the land allocation and that the promised employment truly benefits local communities around Dholera and isn't just for outsiders.
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Rohit P
Finally, we are moving beyond just IT services to building core AI infrastructure! L&T is a trusted name. The 'MANAV' vision focusing on ethics and sovereignty is crucial. Gujarat is definitely leading the charge in India's digital transformation.
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Sarah B
As someone working in tech, this is exciting. "AI-ready" and "green" are the keywords. The global demand for sustainable compute is huge. If executed well, this can put Gujarat on the map for international companies looking for ethical AI hubs.
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Vikram M
Good step, but the proof will be in the pudding. We've seen big MoUs signed before with much fanfare, only for projects to get delayed. Hope the 2028 deadline is met. Also, will the power for this "green" centre come from new solar/wind projects in Gujarat?
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Karthik V
This is the kind of development we need. It's not just about one data centre; it's about creating an entire ecosystem. Will attract startups, R&D centres, and educational institutes. Future looks bright for engineering students in the state!

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