Uttar Pradesh Cabinet Approves Data Centre Policy 2026

Key Facts

• Date of Approval: 6 July 2026
• Approving Authority: Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath
• Policy Name: Data Centre Policy, 2026 (replaces the Data Centre Policy, 2021 expired on 27 January 2026)
• Focus Areas: Development of AI-ready, green data centres with emphasis on GPU-based infrastructure, energy efficiency, and sustainable operations
• Capacity Target: More than 2 gigawatts of additional data centre capacity within the state
• Investment Target: Over Rs 2 lakh crore
• Incentives Offered: Capital subsidies, interest subsidies, concessions on land allotment, stamp duty exemptions, electricity charge concessions, and infrastructure support
• Special Incentives: Available for Tier-3 and Tier-4 data centres, AI Compute Booster incentives, Green and Sustainable Operations incentives
• Regional Benefits: Special incentives for Bundelkhand and Purvanchal regions
• Employment Generation: Expected to create 7,500 long-term direct jobs and approximately 50,000 short-term direct jobs during construction

Background & Context

Data centres are specialized facilities that house server farms, storage systems, and networking equipment designed for storing, processing, and distributing digital information. Uttar Pradesh’s previous Data Centre Policy (2021) facilitated approval of projects amounting to Rs 21,343 crore with a combined capacity of 644 MW and saw seven projects operational by 2026. The 2026 policy supersedes the 2021 policy and focuses on advancing data centre infrastructure towards AI-readiness and sustainability, aligning with contemporary global digital infrastructure trends. Emphasis on GPU-based infrastructure is intended to support artificial intelligence and high performance computing workloads. The policy also aligns with Uttar Pradesh's broader objective of evolving into a one-trillion-dollar economy by expanding and modernizing its technological and industrial base.

Why This Matters for Exams / Exam Relevance

This policy framework exemplifies state-level efforts to promote industrial growth through technology-driven initiatives combined with fiscal incentives. It highlights important themes for examinations such as the role of policy in digital infrastructure development, government incentives for technological and regional development, and employment generation strategies. Understanding the specific focus on AI capabilities, green initiatives, and regional inclusivity (Bundelkhand and Purvanchal) aids in appreciating government policy making at the state level. Key factual data such as dates, names of leaders, investment amounts, capacity targets, and components of the incentive package are essential for current affairs and general studies papers.

Points to Remember

• The Uttar Pradesh Data Centre Policy, 2026 was approved on 6 July 2026, replacing the 2021 policy which expired on 27 January 2026.
• The policy was approved by the Uttar Pradesh Cabinet under Chief Minister Yogi Adityanath.
• The policy targets development of AI-ready, GPU-based, and green data centres with a capacity addition target exceeding 2 gigawatts.
• Investment incentives include capital and interest subsidies, concessions on land allotment, exemptions from stamp duty, and reduced electricity charges.
• Special incentives are provided for Tier-3 and Tier-4 data centres as well as AI Compute Booster and Green Operations incentives.
• Regions such as Bundelkhand and Purvanchal are given special incentives to promote regional development.
• Job creation is anticipated to be approximately 7,500 long-term direct jobs and 50,000 short-term jobs during construction phases.
• Previous policy achievements include approval of projects worth Rs 21,343 crore with a capacity of 644 MW and seven operational projects by 2026.