- ‘Viksit Gujarat – Data Centre Policy 2026-29’ aims to create 7.5 GW of data centre capacity and position the State as India’s premier hyperscale AI destination
- Capital subsidies, power incentives, SGST reimbursements and cable landing stations to accelerate next-generation digital infrastructure
- Chief Minister Bhupendra Patel says Gujarat is laying the foundation for a globally competitive AI and cloud ecosystem
- Senior officials highlight India’s massive data generation and Gujarat’s readiness to bridge the global infrastructure gap
- Industry welcomes bold policy; Ishan Technologies CMD Pinkesh Kotecha calls it a defining step towards India’s sovereign AI ambitions
NE BUSINESS BUREAU
GANDHINAGAR, JULY 11
In one of the country’s most ambitious digital infrastructure initiatives, the Gujarat Government has unveiled the ‘Viksit Gujarat – Data Centre Policy 2026-29’, setting the stage for the State to emerge as India’s leading destination for hyperscale data centres, artificial intelligence (AI) infrastructure and cloud computing investments.
The policy aims to attract ₹6 lakh crore in investments while creating 7.5 GW of data centre capacity, supported by a comprehensive package of fiscal and non-fiscal incentives, including capital assistance, power tariff subsidies, SGST reimbursements and the establishment of new international cable landing stations to strengthen global connectivity.
Launching the policy in Gandhinagar, Chief Minister Bhupendra Patel said Gujarat is committed to building world-class digital infrastructure that will drive the next phase of India’s technology-led economic transformation and position the State as a globally competitive hub for AI, cloud services and advanced digital ecosystems.
Science and Technology Department Secretary P. Bharathi underscored the strategic importance of the initiative, observing that data has become more valuable than oil in the digital era.
“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 pointed out that although India generates nearly 20 per cent of the world’s data, it accounts for only around three per cent of global data centre capacity, making domestic digital infrastructure expansion a national priority.
“The question is, where will India’s future digital infrastructure be built? Gujarat is ready to answer that question.”
Officials said the policy is designed to establish Gujarat as a globally competitive hub for hyperscale and colocation data centres while promoting sustainable, energy-efficient facilities leveraging the State’s leadership in renewable energy and round-the-clock power availability. The government is also planning multiple cable landing stations to significantly improve international bandwidth connectivity and attract global cloud service providers.
Welcoming the policy, Pinkesh Kotecha, Chairman and Managing Director, Ishan Technologies, described it as a transformational blueprint for India’s AI future. “Gujarat’s Data Centre Policy reflects the scale of ambition needed if India wants to become a serious AI infrastructure destination. The state’s target of developing up to 8 GW of data centre capacity, backed by capital incentives, power support, SGST reimbursements and new cable landing stations, signals a long-term commitment to attracting hyperscale and AI investments. The next opportunity will be execution. Faster approvals, reliable power, stronger fibre connectivity, and a skilled workforce will determine whether these measures translate into sustained growth.”
He further said: “The opportunity extends well beyond Gujarat. India generates nearly one-fifth of the world’s data but hosts only a fraction of global data centre capacity. Bridging that gap calls for an integrated approach that combines compute, connectivity, cloud, and cybersecurity while enabling enterprises to securely deploy AI workloads within the country. States that can create these conditions will shape India’s sovereign AI ambitions, and Gujarat has the potential to lead that shift.”
Industry experts believe the policy could significantly enhance Gujarat’s attractiveness for hyperscalers, AI companies, cloud providers and global technology firms looking to establish large-scale digital infrastructure in India, while reinforcing the country’s aspirations to become a trusted global hub for secure data hosting and AI innovation.
