Signal Gujarat launches 'Viksit Gujarat – Data Centre Policy 2026-29'

Summary

Gujarat Chief Minister Bhupendra Patel launched the Viksit Gujarat Data Centre Policy 2026-29 on July 9, 2026 in Gandhinagar, the state's first policy dedicated to the data-center sector, targeting more than Rs 6 lakh crore in investment and 7.5 GW of capacity, with at least 51% of electricity required to come from renewable sources. Gujarat has already received proposals for nearly 10 GW of capacity from 14 companies, and the 20-year incentive package includes full exemption on stamp duty and registration fees, 100% reimbursement of electricity duty, a power subsidy of Re 1 per unit, relaxed FSI and building standards, and funding support for captive desalination plants; data centers are also classified as an Essential Service under the Gujarat Essential Services Maintenance Act, 1972. The Dholera region, about 100 km from Ahmedabad, offers an additional capital subsidy of 2.5% of eligible fixed capital investment claimable within 10 years and an interest subsidy of up to 4% for 10 years capped at Rs 25 crore annually, and Deputy CM Harsh Sanghavi said Dholera is positioned to become the world's largest "data centre city"; Tata Electronics laid the foundation for a semiconductor plant there in March 2024 with a Rs 91,000 crore investment. Gujarat's pitch leverages its existing 69 GW of installed power capacity, 47 GW of which is renewable. Uttar Pradesh separately introduced an AI-Ready Data Center Policy 2026, approved by the UP Cabinet under CM Yogi Adityanath, targeting an additional 2 GW of capacity and roughly Rs 2 lakh crore in investment with extra incentives for the Bundelkhand and Purvanchal regions, expected to generate about 7,500 long-term jobs and nearly 50,000 short-term construction jobs.