Gujarat Notifies Data Center Policy 2026-29; Targets 7.5 GW Hyperscale Green AI Capacity

Gandhinagar: The Gujarat Government on Friday notified and issued the Government Resolution (GR) for the Viksit Gujarat Data Center Policy 2026–29, a first-of-its-kind initiative in India aimed at establishing Gujarat as the country’s leading destination for Hyperscale Green AI Data Centers and a global hub for digital infrastructure, a press release said.

The policy, earlier unveiled by Chief Minister Bhupendra Patel, has set a target of establishing 7.5 GW of Hyperscale Green AI Data Center capacity to meet the growing demand for artificial intelligence, cloud computing, high-performance computing, and digital services.

Backed by nearly 74 GW of installed power capacity, a strong renewable energy ecosystem, extensive optical fiber connectivity, and world-class industrial infrastructure, Gujarat offers an attractive investment destination for hyperscalers, cloud service providers, AI computing firms, colocation operators, and digital infrastructure developers. The strategic advantages of Dholera Special Investment Region (SIR) and GIFT City further strengthen the state’s competitiveness.

A major highlight of the policy is the development of Dholera as one of the world’s largest Hyperscale Green AI Data Center hubs, leveraging its planned infrastructure, sustainable urban development, and strategic location.

To attract large-scale investments, the policy provides a comprehensive package of fiscal incentives, including capital subsidy, interest subsidy, power tariff subsidy, reimbursement of electricity duty, exemption from stamp duty and registration fees, SGST reimbursement, and financial assistance for setting up captive desalination plants. In addition, a range of non-fiscal incentives has been introduced to facilitate project implementation.

Focus on Ease of Doing Business

The policy also focuses on enhancing the Ease of Doing Business through streamlined approval mechanisms, flexible building and development regulations, additional Floor Space Index (FSI), and coordinated support for power, water connectivity, and statutory clearances.

Sustainability is a key pillar of the policy. Eligible data center projects will be required to source at least 51% of their operational electricity consumption from renewable and green energy sources, reinforcing Gujarat’s commitment to low-carbon industrial growth and environmentally sustainable digital infrastructure.

Through this initiative, the state aims to attract significant domestic and global investments, generate high-value employment opportunities, strengthen India’s digital sovereignty, and establish Gujarat as a premier destination for next-generation AI and cloud infrastructure.

The government has invited global hyperscalers, cloud service providers, AI companies, digital infrastructure developers, technology enterprises, and institutional investors to partner in building the future of India’s digital economy from Gujarat. Detailed information on the policy, eligibility criteria, incentives, and the Pre-Expression of Interest (Pre-EOI) process is available on the official Data Center Policy portal.

Get More Details Here

For detailed information regarding the policy provisions, eligibility criteria, and incentives, please visit: https://dstpolicy.gujarat.gov.in.

Applicants are required to register on the portal and, after successful registration, log in to the portal to submit the Pre-EOI Form. For registration, please visit: https://dstpolicy.gujarat.gov.in/register.