Matribhumi Samachar English
Gandhinagar. Wednesday, 15 July 2026
In a landmark move destined to reshape India’s technology landscape, the Gujarat government has officially unveiled its inaugural “Viksit Gujarat – Data Centre Policy 2026-29”. Launched by Chief Minister Bhupendra Patel at a high-level event in Gandhinagar, this comprehensive policy maps out an aggressive blueprint to establish the state as the preferred global destination for hyperscale data centres, sovereign artificial intelligence (AI) infrastructure, and cloud computing services.
Massive Capacity & Investment Horizons
The state has set eye-catching targets for the policy’s execution period, aiming to draw a staggering ₹6 lakh crore (approx. $72 billion USD) in private investments and commission 7.5 Gigawatts (GW) of data centre power capacity. The scale of this ambition is historic—it aims to bridge the global infrastructure gap where India, despite generating nearly 20% of the world’s data, currently holds just 3% of global data centre capacity.
Gujarat has already registered active proposals for nearly 10 GW of capacity, with the state targeting operationalization of up to 8 GW under this fast-tracked framework.
Unprecedented Fiscal Incentives for Global Giants
Recognizing data centres as “strategic infrastructure”, the state government is deploying a heavily stacked financial and regulatory incentive matrix to lower the Total Cost of Ownership (TCO) for operators:
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Capital and Interest Subsidies: Projects in the Dholera region receive an exclusive 2.5% capital subsidy on fixed capital investments alongside an interest subsidy of up to 4% for 10 years (capped at ₹25 crore annually).
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Power Concessions: A ₹1 per unit tariff subsidy for 20 years combined with a complete 100% exemption from state electricity duties for two decades.
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Tax and Duty Waivers: Full reimbursement of State GST (SGST) and 100% exemption from stamp duties and registration charges on land acquisition.
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Desalination Assistance: Financial support covering 20% of capital expenditure (up to ₹2 crore per MLD) for setting up captive desalination plants.
Sustainability: Mandated Green Energy & Clean Water
What sets the Viksit Gujarat policy apart is its strict Environmental, Social, and Governance (ESG) mandates. Data centres are notorious power and water consumers. To offset this, the policy mandates that at least 51% of all electricity consumed by these facilities must be sourced from green energy.
Furthermore, instead of depleting local municipal water grids or groundwater vital to agriculture and local citizens, operators must fulfill their heavy cooling water requirements through custom desalination plants that process seawater.
Dholera SIR: Becoming the World’s Largest “Data Centre City”
While clusters will thrive in GIFT City, Ahmedabad, Jamnagar, and Mundra, the Dholera Special Investment Region (SIR) has been positioned as the primary nerve centre. Thanks to massive greenfield plots, an upcoming international airport, high-speed rail connectivity, and a sprawling 47 GW renewable energy ecosystem, Dholera is set to become a powerhouse for both data facilities and Global Capability Centres (GCCs). The region’s strategic location along the 1,600 km coastline also facilitates the creation of two new submarine cable landing stations, providing lightning-fast, direct international internet connectivity.
Frequently Asked Questions (FAQs)
Q1: What is the main objective of the Gujarat Data Centre Policy 2026-29?
A: The main objective is to establish Gujarat as India’s leading technology hub by attracting ₹6 lakh crore in investments and creating 7.5 GW of sustainable, high-capacity data centre infrastructure to fuel AI and cloud computing.
Q2: What are the green mandates for data centres under this policy?
A: Facilities must run on at least 51% renewable energy and utilize custom desalination plants for cooling processes to prevent the depletion of local industrial and agricultural water resources.
Q3: Which cities are chosen as major data centre clusters?
A: The primary clusters are Dholera SIR, GIFT City, Ahmedabad, Jamnagar, and Mundra, with Dholera slated to become the focal “Data Centre City”.
Q4: How does this policy help the Indian AI ecosystem?
A: It creates the high-compute backing, secure high-speed storage, and low-latency infrastructure required by domestic startups and global corporations to train and run massive machine learning and quantum computing models.
Relevant External Links
For detailed local coverage on state policies, regional developmental updates, and industrial growth stories, check out the following report sections:
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For ongoing English news reports from the region: Matribhumi Samachar English Portal
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For administrative infrastructure announcements and updates: Matribhumi Samachar State News
Disclaimer
Disclaimer: The information provided in this article is gathered from secondary research and official policy releases by the Department of Science and Technology, Government of Gujarat. While every effort has been made to ensure the accuracy of financial figures and incentives as of 2026, prospective investors and readers are advised to check the official government notifications and perform independent due diligence before making investment decisions.
