Gandhinagar: The Gujarat government on Thursday launched its first-ever Data Centre Policy 2026–29, aiming to attract ₹6 lakh crore in investments and develop 7.5 GW of data centre capacity. The state hopes to establish itself as India’s preferred destination for hyperscale data centres, cloud infrastructure and AI-powered digital services.

The policy includes a wide range of fiscal incentives, such as capital and interest subsidies, power tariff support, SGST reimbursement, electricity duty reimbursement, assistance for desalination plants, and exemptions on stamp duty. It also offers several non-fiscal benefits, including faster approvals, additional floor space index (FSI), relaxed building regulations, open access to power, and assured electricity and water supply to help speed up project implementation.

“Gujarat is the first state to introduce such a policy. We are confident it will attract ₹6 lakh crore in investments, create 7.5 GW of data centre capacity, and generate substantial employment opportunities,” Chief Secretary M. K. Das said while announcing the policy.

The government said the policy reflects the changing role of data centres, which have evolved from simple storage facilities into critical digital infrastructure supporting artificial intelligence, cloud computing and next-generation 5G/6G technologies. Gujarat plans to leverage its 69 GW installed power capacity, strong renewable energy ecosystem, and major investment hubs such as GIFT City, Dholera SIR and Mandal-Becharaji to attract global hyperscale operators and cloud service providers.

Fiscal incentives

The policy provides several financial incentives, including:

• A 2.5% capital subsidy on eligible fixed capital investment for projects in the Dholera region.

• Interest subsidy of up to 4% for 10 years on term loans for fixed capital investment, subject to a maximum of ₹25 crore per year.

• A ₹1 per unit power tariff subsidy and 100% reimbursement of electricity duty for 20 years from the start of commercial operations.

• Full exemption from stamp duty and registration fees on land transactions, along with 100% SGST reimbursement on eligible plant, machinery and services for up to 20 years.

Essential service status

To ensure uninterrupted operations, the policy classifies the operation and maintenance of data centres as an “Essential Service” under the Gujarat Essential Services Maintenance Act, 1972.

It also relaxes several building regulations by allowing up to 70% ground coverage, additional FSI, multi-level stacking of diesel generators, rooftop installation of chillers, dual power supply through independent feeders, and support for captive desalination plants.

To promote sustainability, data centre operators will be required to source at least 51% of their electricity from renewable energy. The policy also encourages the adoption of Battery Energy Storage Systems (BESS) to strengthen energy reliability.

Eligibility and implementation

The policy applies to data centre projects with an approved installed IT load capacity of 150 MW or more. The Department of Science and Technology (DST) will serve as the nodal agency for implementation, while a High-Powered Committee (HPC) and State Level Empowered Committee (SLEC) will oversee approvals and ensure speedy project clearances.

The policy will remain in force for three years from the date of its notification, providing a stable framework for investment in Gujarat’s digital infrastructure sector. DeshGujarat