Gujarat launches Data Centre Policy 2026-29 to accelerate digital infrastructure and AI investments
- IBEF
- July 10, 2026
The Gujarat Government has launched the 'Viksit Gujarat – Data Centre Policy 2026-29' to attract investments in hyperscale data centres, artificial intelligence (AI) infrastructure and digital services, reinforcing the state's ambition to become a leading digital infrastructure hub. Chief Minister Mr. Bhupendra Patel unveiled the policy in Gandhinagar, which offers a range of fiscal incentives including capital and interest subsidies, power tariff support, State Goods and Services Tax (SGST) reimbursement, electricity duty reimbursement, assistance for desalination plants and stamp duty exemptions. The policy also provides non-fiscal measures to create a competitive ecosystem for data centre and AI infrastructure development. Gujarat has recognised data centres as strategic infrastructure and aims to leverage its existing strengths, including 69 GW of installed power capacity, of which 47 GW is generated from renewable energy sources, along with industrial hubs such as Dholera and GIFT City. The state also plans to establish two cable landing stations to strengthen international digital connectivity and attract global investments.
The policy is designed to support India's expanding digital economy and strengthen the country's position in the global data infrastructure landscape. While India generates nearly 20% of the world's data, it currently accounts for only around 3% of global data centre capacity, creating significant opportunities for future expansion. Gujarat has already received proposals for nearly 10 GW of data centre capacity and aims to develop up to 8 GW under the new policy. The initiative is expected to accelerate investments in AI, cloud computing, data storage and digital services while creating a robust ecosystem for advanced technologies such as artificial intelligence and quantum computing. By strengthening digital infrastructure, improving international connectivity and promoting renewable energy-powered data centres, the policy is expected to enhance Gujarat's competitiveness, support innovation-led industries and contribute towards the state's vision of becoming a Rs. 333.24 lakh crore (US$ 3.5 trillion) economy by 2047.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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