The Gujarat government has launched the Viksit Gujarat Data Centre Policy 2026-29 to make the state a major hub for data centres, artificial intelligence (AI), and cloud computing. Chief Minister Bhupendra Patel launched the policy at the Mahatma Mandir Convention Centre. He said Gujarat aims to become India’s top destination for data centres and strengthen the country’s digital economy.
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₹6 Lakh Crore Investment Expected
Arjun Modhwadia, Minister of Science and Technology, Gujarat, said the state has already received proposals from 14 companies to build hyperscale data centres. The government expects investments of more than ₹6 lakh crore in the first phase. Most of the projects are planned for Dholera, where a data centre cluster with a capacity of 7 to 8 GW is expected to come up. Modhwadia said Gujarat wants to become India’s leading AI and data centre hub over the next decade.
Dholera to Become a Data Centre Hub
Deputy Chief Minister of Gujarat, Harsh Sanghavi, said Dholera has the potential to become the world’s largest data centre city. He said the government has already received requests from Indian and global companies for almost twice the planned capacity of 7.5 GW. The state also plans to develop Dholera as a Global Capability Centre (GCC) hub with support from a new airport and a semi-high-speed rail connection to Ahmedabad.
Focus on AI and Green Energy
The new policy is designed to build a complete digital ecosystem that includes AI, cloud computing, and quantum computing, not just data storage. To promote sustainability, at least 51% of the electricity used by data centres must come from renewable energy. Developers will also need to meet their water needs through desalination plants instead of using local freshwater.
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Incentives for Investors
The policy aims to create 7.5 GW of data centre capacity across Gujarat. It offers several benefits to investors, including capital subsidy, interest subsidy, power tariff support, exemption from stamp duty, reimbursement of electricity duty, and SGST benefits.
It also promises faster approvals through a single-window system, better infrastructure, dual power supply, and 24×7 water availability. Only projects with a minimum approved 150 MW IT load will qualify for incentives. The government has also classified data centre operations as an essential service to ensure uninterrupted operations.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
