Gujarat unveils Data Centre Policy 2026-29 to attract tech investments

The Gujarat government on Thursday launched the 'Viksit Gujarat – Data Centre Policy 2026-29', a major initiative aimed at attracting investments in hyperscale data centres, artificial intelligence (AI) infrastructure and digital services, as the state seeks to establish itself as India's leading digital infrastructure hub.Chief Minister Bhupendra Patel unveiled the policy booklet at a programme in Gandhinagar in the presence of Deputy Chief Minister Harsh Sanghavi, Science and Technology Minister Arjun Modhwadia, Chief Secretary Manoj Kumar Das, senior government officials and representatives from the technology industry.The new policy offers a comprehensive package of fiscal and non-fiscal incentives to encourage investments in large-scale data centres while strengthening Gujarat's position in the rapidly expanding global digital economy.

મુખ્યમંત્રી શ્રી ભૂપેન્દ્રભાઈ પટેલના વરદ્હસ્તે ગાંધીનગરના મહાત્મા મંદિર ખાતેથી ‘વિકસિત ગુજરાત ડેટા સેન્ટર પોલિસી 2026-2029’નું લોન્ચિંગ નાયબ મુખ્યમંત્રી શ્રી હર્ષભાઈ સંઘવી, સાયન્સ-ટેક્નોલોજી મંત્રી શ્રી અર્જુનભાઈ મોઢવાડીયા તથા અન્ય મહાનુભાવોની ઉપસ્થિતિમાં કરવામાં આવ્યું હતું. pic.twitter.com/2bT3iWIsrv

— CMO Gujarat (@CMOGuj) July 9, 2026

Speaking on the occasion, Chief Minister Patel said the policy has been introduced with the resolve to strengthen Gujarat's digital economy and meet the growing demand for data centres in the years ahead. "With the resolve to strengthen the digital economy in the state alongside the anticipated demand for data centres in the future, we have announced the 'Viksit Gujarat Data Centre Policy'. Heartiest congratulations to all those associated with the formulation of this policy," he said.

ભવિષ્યમાં ઉભી થનાર ડેટા સેન્ટર્સની માંગ અને રાજ્યમાં ડિજિટલ ઈકોનોમી વધુ મજબૂત બનાવવાના સંકલ્પ સાથે આપણે 'વિકસિત ગુજરાત ડેટા સેન્ટર પોલિસી' જાહેર કરી છે. આ નીતિના નિર્માણ સાથે સંકળાયેલ સૌને ખૂબ ખૂબ અભિનંદન. pic.twitter.com/BaU6P5Yucw

— Bhupendra Patel (@Bhupendrapbjp) July 9, 2026

Speaking at the launch, Science and Technology Department Secretary P. Bharathi said the policy has been designed to create world-class digital infrastructure capable of supporting India's growing data economy."Data is even more valuable than oil. Every digital payment, every AI model, every cloud application, every online transaction, every government service and every innovation is powered by data," she said, underscoring the strategic importance of data centres in the digital age.Highlighting India's untapped potential, Bharathi noted that while the country generates nearly 20 per cent of the world's data, it accounts for only about 3 per cent of global data centre capacity, whereas the United States and China together hold nearly 70 per cent."The question is, where will India's future digital infrastructure be built? Gujarat is ready to answer that question," she said.To further strengthen digital connectivity, Bharathi announced that two cable landing stations are planned in Gujarat, with another major connectivity project expected to be announced soon. The enhanced international connectivity is expected to make Gujarat a preferred destination for global data centre investments.
Under the Data Centre Policy 2026-29, the state has recognised data centres as strategic infrastructure and will provide incentives including capital subsidies, interest subsidies, power tariff support, SGST reimbursement, electricity duty reimbursement, assistance for desalination plants and stamp duty exemptions.
Officials said the policy also incorporates several non-fiscal measures aimed at simplifying approvals and creating a competitive ecosystem for hyperscale data centres and AI infrastructure.The policy leverages Gujarat's strong infrastructure base, including 69 gigawatts of installed power capacity, of which 47 gigawatts is generated from renewable energy, along with industrial growth centres such as Dholera and GIFT City.According to the policy document, global data centre capacity is expected to approach 200 gigawatts by the end of the decade, and Gujarat intends to secure a significant share of this growth while contributing to its long-term vision of becoming a USD 3.5 trillion economy by 2047.
Addressing the gathering, Science and Technology Minister Arjun Modhwadia said India may have missed earlier industrial revolutions but has emerged as a global leader in sectors such as vaccine manufacturing and semiconductors.He said the next wave of economic transformation would be driven by artificial intelligence and quantum computing, adding, "Data is the new oil well of the developing economy."Drawing comparisons with global infrastructure, Modhwadia said the United States has nearly 5,500 data centres, the United Kingdom over 500, while India currently has around 200. He noted that India's installed data centre capacity of 2-3 gigawatts is expected to increase to around 8 gigawatts with projects under development.The minister revealed that Gujarat has already received investment proposals for nearly 10 gigawatts of data centre capacity and stressed that the initiative extends beyond physical infrastructure to building a comprehensive AI ecosystem."This is not just about data centres; it is part of the entire AI ecosystem. If we become leaders in data centres, Gujarat will become not only the country's but also the world's leader in the AI ecosystem," he said.

In the AI era, data is the currency of progress and the fuel of growth.

With launch of "Viksit Gujarat Data Center Policy 2026–2029", Gujarat is preparing to drive next wave of digital transformation by fostering innovation, generating high-value employment and strengthening a… pic.twitter.com/Oxo9G4uYv0

— Arjun Modhwadia (@arjunmodhwadia) July 9, 2026

Inviting domestic and global investors to participate in Gujarat's digital transformation, Modhwadia said the state government aims to develop up to eight gigawatts of data centre capacity and is committed to providing policy support, robust infrastructure and a business-friendly environment to make Gujarat a global destination for digital investments.

We invite global technology leaders, investors, innovators, and visionaries to be part of Gujarat’s growth story and contribute to shaping the next era of AI, cloud, and digital infrastructure.

Join us in building a future-ready ecosystem, driving innovation at scale, and… pic.twitter.com/4QDzosLruM

— Arjun Modhwadia (@arjunmodhwadia) July 9, 2026

(State Correspondent)