Uttar Pradesh Approves Data Centre Policy 2026

The Uttar Pradesh Cabinet approved the Data Centre Policy, 2026, on 6 July 2026 in Lucknow. The meeting was chaired by Chief Minister Yogi Adityanath. The policy replaces the Data Centre Policy, 2021, which expired on 27 January 2026.

Data centres and AI-ready infrastructure

Data centres are facilities that store, process, and distribute digital data through servers, storage systems, and network equipment. The 2026 policy focuses on AI-ready and green data centres, with emphasis on GPU-based infrastructure, energy efficiency, and sustainable operations. It targets more than 2 gigawatts of additional data centre capacity in the state.

Investment and incentive structure

The policy targets investments of over Rs 2 lakh crore. It includes capital subsidies, interest subsidies, concessions on land, stamp duty, electricity charges, and infrastructure support. It also provides special incentives for Tier-3 and Tier-4 data centres, AI Compute Booster incentives, and Green and Sustainable Operations incentives.

Previous policy and approved projects

Under the Data Centre Policy, 2021, projects worth around Rs 21,343 crore were approved in Uttar Pradesh. These projects had a combined capacity of 644 MW, and seven projects were operational by 2026.

Regional focus and employment

The policy provides special incentives for Bundelkhand and Purvanchal. It is expected to generate 7,500 long-term direct jobs and about 50,000 short-term direct jobs during the construction period.

Important Facts for Exams

• Uttar Pradesh is one of India’s largest states by population and has Lucknow as its capital.
• GPU stands for Graphics Processing Unit, which is used in artificial intelligence and high-performance computing.
• Tier-3 and Tier-4 data centres are generally used for large-scale enterprise and cloud infrastructure.
• Stamp duty and electricity charges are common fiscal components in industrial incentive policies.

One-trillion-dollar economy target

The policy is linked to Uttar Pradesh’s goal of becoming a one-trillion-dollar economy. Data centre policy frameworks in India often combine digital infrastructure expansion with industrial incentives and regional development measures.