Gandhinagar, India: The Gujarat government has launched the Viksit Gujarat – Data Centre Policy 2026–29 to attract investments in hyperscale data centres, artificial intelligence infrastructure and digital services, positioning the state as a major hub for India’s next phase of digital infrastructure growth.
The policy was unveiled by Chief Minister Bhupendra Patel in Gandhinagar in the presence of senior government officials, ministers and representatives from the technology sector.
The initiative comes as demand for data centre capacity is rising sharply due to the growth of cloud computing, digital payments, online services, AI workloads, government platforms and enterprise digital transformation.
Under the new policy, Gujarat has classified data centres as strategic infrastructure and introduced a mix of fiscal and non-fiscal incentives to attract investors. These include capital subsidy, interest subsidy, power tariff support, SGST reimbursement, electricity duty reimbursement, stamp duty benefits and support for desalination plants. The policy is designed to make the state more competitive for large-scale data centre and AI infrastructure projects.
The technology focus of the policy is significant because data centres are becoming the backbone of AI adoption, cloud services, digital public infrastructure and high-performance computing. As businesses and governments process larger volumes of data, states with reliable power, connectivity, land availability and policy support are expected to attract major investments.
Gujarat is highlighting its infrastructure strengths as a key advantage. The state has around 69 gigawatts of installed power capacity, including a large renewable energy base, along with industrial hubs such as Dholera and GIFT City. These assets are expected to support the development of energy-intensive data centre campuses and AI computing infrastructure.
The state government has also indicated plans for cable landing stations in Gujarat, which could improve international data connectivity and support the growth of cloud and digital services. Better submarine cable connectivity can help reduce latency, improve network resilience and make the state more attractive for hyperscale data centre operators.
Officials said Gujarat aims to develop up to eight gigawatts of data centre capacity in the coming years. The state has already received proposals for large-scale data centre investments, reflecting growing interest from domestic and global players in India’s digital infrastructure market.
The policy also aligns with Gujarat’s broader economic vision and its ambition to become a major contributor to India’s AI and technology ecosystem. With AI, quantum computing, digital transactions and cloud applications expected to drive future economic growth, data centres are emerging as critical infrastructure for both industry and government.
By launching the Data Centre Policy 2026–29, Gujarat is seeking to build a strong foundation for AI-ready infrastructure, attract long-term technology investments and strengthen its role in India’s digital economy.
