Gujarat Unveils Data Centre Policy 2026-29

Gujarat launched its first Data Centre Policy 2026-29 on 9 July 2026 in Gandhinagar. The policy targets investment of ₹6 lakh crore and a data centre capacity of 7.5 GW. It covers hyperscale data centres, cloud infrastructure, and AI-powered digital services.

Policy Objectives

The policy seeks to position Gujarat as a destination for digital infrastructure projects. It provides a framework for data centre development, project approvals, power access, and water supply. The Department of Science and Technology serves as the nodal agency for implementation and clearances.

Fiscal and Non-Fiscal Incentives

The policy includes capital subsidy, interest subsidy, and a power tariff subsidy of ₹1 per unit for 20 years. It also provides 100% reimbursement of SGST and electricity duty for 20 years, stamp duty exemption, and assistance for desalination plants. Non-fiscal incentives include faster approvals, additional Floor Space Index, relaxed building regulations, open access to power, and assured electricity and water supply. These provisions apply to eligible data centre projects under the policy framework.

Energy and Infrastructure Provisions

Data centre operators must source at least 51% of their electricity from renewable energy. This requirement is part of the policy’s sustainability conditions for large digital infrastructure facilities. Dholera Special Investment Region has been identified as a primary hub for hyperscale data centres. The region receives an exclusive 2.5% capital subsidy on eligible investments under the policy. Two new cable landing stations have also been planned in Gujarat. Cable landing stations are coastal facilities where submarine communication cables connect to terrestrial networks.

Important Facts for Exams

• Data centres are facilities that store, process, and distribute digital data for organisations and cloud service providers.
• Hyperscale data centres are large-scale facilities designed for high computing capacity and rapid expansion.
• Floor Space Index is a planning term that defines the maximum permissible built-up area on a plot of land.
• The Gujarat Essential Services Maintenance Act, 1972, is used to regulate essential services in the state.

Key Exam Points

The policy was unveiled by Chief Minister Bhupendra Patel on 9 July 2026. Gujarat has linked the policy with renewable energy use, industrial incentives, and international connectivity through cable landing stations.