The Gujarat government launched the Viksit Gujarat Data Centre Policy 2026–29 on 9 July 2026 to attract hyperscale data centres, AI infrastructure and related investments.
Key targets and capacity
- Investment target: Over ₹6 lakh crore expected in the data‑centre sector during the policy period.
- Capacity target: State aims to establish 7.5 GW of data‑centre capacity in 2026–29.
- Current base: Gujarat presently hosts about 2–3 GW of data‑centre capacity.
- National context: India generates roughly 20% of global data but accounts for about 3% of global data‑centre capacity.
Fiscal and regulatory incentives
- Capital subsidy: 2.5% for eligible projects in Dholera Special Investment Region.
- Interest subsidy: Up to 4% for 10 years for eligible projects.
- Power support: Flat power tariff subsidy of ₹1 per unit for 20 years; electricity duty reimbursement provisions included.
- Other concessions: SGST reimbursement, stamp‑duty exemptions and assistance for desalination plants are part of the policy.
- Legal status: Data‑centre operations designated an “essential service” under the Gujarat Essential Services Maintenance Act for uninterrupted functioning.
- Renewable mandate: Minimum 51% of electricity consumption must come from renewable sources.
Infrastructure and location
- Primary hubs: Dholera and GIFT City identified as focal locations for hyperscale facilities.
- Power availability: Gujarat has ~69 GW installed capacity, ~47 GW from renewables.
- Connectivity: Policy includes plans for two cable landing stations to strengthen international fibre connectivity.
- Industry interest: Proposals received from 14 companies with initial investment indications aligned to the policy target.
IASPOINT Booster Facts
- Hyperscale definition: Market convention treats hyperscale data centres as facilities with multi‑MW IT load (commonly >5 MW).
- Cable landing station: Node where undersea fibre meets terrestrial networks; critical for international latency and redundancy.
- State policy leverage: Capital/interest and power subsidies are common state tools to attract energy‑intensive data‑centre investments.