Gujarat launches Data Centre Policy 2026-29 targeting ₹6 lakh crore investment and 7.5 GW capacity

The Gujarat government believes its new Data Centre policy could transform Gujarat into one of India’s leading digital infrastructure hubs, with Dholera at the heart of that vision. But why are states suddenly competing for data centres? And can Gujarat realistically become India’s next data centre capital?

Can Gujarat find water power for its Rs lakh crore datacentre dream

The State hopes to attract investments worth ₹6 lakh crore and build 7.5 GW of data centre capacity over the next few years, positioning itself alongside established hubs such as Maharashtra, Tamil Nadu and Telangana

State Offers 20-Year Electricity Duty, SGST Incentives

The policy sets an ambitious target of establishing 7.5 GW of data centre capacity in the state.

Gandhinagar: Gujarat has unveiled an ambitious roadmap to become India's leading destination for data centers and artificial intelligence infrastructure. Launching the Viksit Gujarat Data Center Policy 2026-29, Chief Minister Bhupendra Patel said the new policy would transform the state into the country's preferred hub for digital infrastructure while attracting investments worth nearly ₹6 lakh crore.The policy was launched at Mahatma Mandir in Gandhinagar in the presence of Deputy Chief Minister Harsh Sanghavi, Science and Technology Minister Arjun Modhwadia, Chief Secretary M.K. Das, senior officials and industry leaders.Addressing the gathering, the Chief Minister said India is emerging as one of the world's largest users and producers of data under the leadership of Prime Minister Narendra Modi. He described data as the backbone of the digital economy and a key driver of the country's journey towards Viksit Bharat.₹500 Crore Creek Plan: CM Bhupendra Patel Cracks Down After Surat Flood Fury"The Viksit Gujarat Data Center Policy 2026-29 will make Gujarat the best destination in India for setting up data centers. It will strengthen cloud services, artificial intelligence, e-commerce, digital governance and smart manufacturing," Patel said.The policy aims to accelerate investments in emerging sectors such as AI, cloud computing, electronics manufacturing and digital infrastructure. The Chief Minister said Gujarat is prepared to meet the growing demand for scalable data storage while building next-generation digital infrastructure for the country.Deputy Chief Minister Harsh Sanghavi revealed that Gujarat has already received requests from leading Indian and global companies seeking nearly double the planned capacity of 7.5 gigawatts, highlighting strong investor confidence."Dholera has the potential to become the world's largest Data Center City. Along with data centers, we are developing it as a hub for Global Capability Centres, backed by an upcoming airport and semi-high-speed rail connectivity," Sanghavi said.The policy also places sustainability at its core. It mandates that 51% of the electricity consumed by data centers must come from green energy, while water requirements will be met through desalination plants instead of diverting supplies meant for agriculture or industry.Science and Technology Minister Arjun Modhwadia said Gujarat has already received proposals for 10 gigawatts of data center capacity and plans to develop up to 8 gigawatts, positioning the state as a future AI powerhouse.Chief Secretary M.K. Das described the policy as a "game changer" for Gujarat's digital economy, saying it would generate large-scale employment, strengthen digital infrastructure and reinforce Gujarat's position as one of India's fastest-growing technology and investment destinations.