Gujarat unveils policy for 7.5 GW Green AI data centre capacity

Gujarat has launched the Viksit Gujarat Data Centre Policy 2026-29, targeting 7.5 GW of hyperscale Green AI data centre capacity. The policy aims to make Gujarat a leading digital hub by offering fiscal and non-fiscal incentives to investors.

The Gujarat government on Friday notified the Viksit Gujarat Data Centre Policy 2026-29, aiming to establish the state as a leading hub for hyperscale Green AI data centres and next-generation digital infrastructure.

Policy Objectives and Vision

The policy targets the creation of 7.5 GW of hyperscale Green AI data centre capacity in Gujarat to meet the growing demand for artificial intelligence, cloud computing, high-performance computing and digital services. The initiative is aligned with the vision of Viksit Bharat 2047 and seeks to strengthen India's digital economy by developing a future-ready digital infrastructure ecosystem, the state government said.

Gujarat's Strategic Advantages

The state highlighted its existing advantages, including nearly 74 GW of installed power capacity, a strong renewable energy ecosystem, extensive optical fibre connectivity and industrial infrastructure, making it an attractive destination for hyperscalers, cloud service providers, AI firms and digital infrastructure developers.

Focus on Dholera SIR

The policy also focuses on developing Dholera Special Investment Region (SIR) as one of the world's largest hyperscale Green AI data centre hubs, leveraging its planned infrastructure and sustainable development model.

Sustainable Energy Mandate

Under the policy, eligible data centre projects will be required to source at least 51 per cent of their operational electricity consumption from renewable and green energy sources, reinforcing the state's focus on sustainable digital infrastructure.

Incentives and Support Measures

To attract investments, the policy provides fiscal incentives including capital subsidy, interest subsidy, power tariff subsidy, reimbursement of electricity duty, exemption from stamp duty and registration fees, SGST reimbursement and financial assistance for setting up captive desalination plants.

The government has also introduced non-fiscal measures to improve ease of doing business, including streamlined approvals, flexible building regulations, additional Floor Space Index (FSI), and coordinated support for power, water connectivity and statutory clearances.

Attracting Global Investment

Through the policy, Gujarat aims to attract domestic and global investments, create high-value employment opportunities, strengthen India's digital sovereignty and position itself as a key destination for AI and cloud infrastructure.

The state government has invited global hyperscalers, cloud service providers, AI companies, technology enterprises and institutional investors to participate in building India's digital infrastructure ecosystem from Gujarat. (ANI)

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