Gujarat Unveils Data Centre Policy 2026-29 to Boost Digital Infrastructure

Key Facts

• Launch Date: 9 July 2026
• State: Gujarat
• Investment Target: ₹6 lakh crore
• Capacity Target: 7.5 GW of data centre power
• Focus Areas: Hyperscale data centres, cloud infrastructure, AI-powered digital services
• Incentives: Capital subsidy, interest subsidy, ₹1 per unit power tariff subsidy for 20 years, 100% SGST and electricity duty reimbursement, stamp duty exemption
• Nodal Agency: Department of Science and Technology, Government of Gujarat
• Renewable Energy Requirement: Minimum 51% electricity from renewable sources
• Key Location: Dholera Special Investment Region (2.5% capital subsidy on eligible investments)
• Infrastructure: Two new cable landing stations planned
• Additional Provisions: Assistance for desalination plants, faster clearances, additional Floor Space Index (FSI), relaxed building regulations, open access to power, assured water supply

Background & Context

Data centres are specialized facilities that store, process, and distribute digital data necessary for organizations and cloud service providers. Hyperscale data centres are large-scale data centres built to accommodate high computing capacity requirements and allow rapid scaling. Recognizing the growing demand for digital infrastructure, Gujarat launched its first Data Centre Policy for 2026-29 to make the state a preferred destination for digital infrastructure projects.

The policy establishes a comprehensive institutional and regulatory framework for development, including project approval mechanisms, power and water supply assurances, and environmental sustainability through renewable energy sourcing requirements. The role of the Department of Science and Technology as the nodal agency facilitates streamlined implementation and clearances.

Dholera Special Investment Region is identified as the primary hub for hyperscale data centres with exclusive incentives. The addition of two cable landing stations, which serve as coastal facilities connecting submarine communication cables to terrestrial networks, will strengthen international digital connectivity.

Why This Matters for Exams / Exam Relevance

The Gujarat Data Centre Policy 2026-29 exemplifies state-led initiatives to bolster digital infrastructure and the digital economy. It introduces critical concepts and policies relevant to current affairs and economic development in India, such as large-scale investments in technology infrastructure, renewable energy mandates, and government incentives. Candidates may be asked about specific policy measures, key figures like Chief Minister Bhupendra Patel, administrative agencies, and the strategic importance of infrastructure like cable landing stations.

Understanding this policy supports comprehension of India's broader digital transformation goals, sustainable infrastructure development, and regional economic planning.

Points to Remember

• Policy timeline: 2026–29, launched on 9 July 2026 by CM Bhupendra Patel
• Investment target of ₹6 lakh crore and data centre capacity target of 7.5 GW
• Incentives include capital subsidy, interest subsidy, ₹1/unit power tariff subsidy for 20 years, 100% reimbursement of SGST and electricity duty for 20 years, and stamp duty exemption
• Data centres must source at least 51% of electricity from renewable energy
• Dholera Special Investment Region designated as key hub with exclusive 2.5% capital subsidy on eligible investments
• Two new cable landing stations planned to enhance international connectivity
• Additional support includes assistance for desalination plants, faster project approvals, additional Floor Space Index (FSI), relaxed building regulations, open access to power, assured electricity and water supply
• Department of Science and Technology is the nodal agency for policy implementation and clearances
• Policy covers hyperscale data centres, cloud infrastructure, and AI-powered digital services