Gujarat notifies data centre policy to build 7.5 GW green AI capacity by 2029

Gandhinagar, Aug 7 (AHN) The Gujarat government on Friday formally notified the 'Viksit Gujarat Data Centre Policy 2026-29', setting out an ambitious plan to develop 7.5 GW of Hyperscale Green AI Data Centre capacity and position the state as India's leading destination for next-generation digital infrastructure.

The Government Resolution (GR), issued after Chief Minister Bhupendra Patel unveiled the policy, aims to support the country's expanding digital economy by creating infrastructure for artificial intelligence, cloud computing, high-performance computing, and other digital services.

The policy is aligned with the national vision of "Viksit Bharat at 2047". A key feature of the policy is its focus on sustainable digital infrastructure.

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, linking future data centre growth with the state's clean energy transition.

The government said Gujarat is well placed to attract investments because of its nearly 74 GW of installed power capacity, extensive renewable energy ecosystem, optical fibre connectivity and established industrial infrastructure.

It added that the strategic advantages of Dholera Special Investment Region (SIR) and GIFT City strengthen the state's position as a destination for hyperscale data centres and AI infrastructure.

Under the policy, Dholera has been identified for development as one of the world's largest Hyperscale Green AI Data Center hubs, supported by planned urban infrastructure and its strategic location.

To encourage investment, the policy offers a range of 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 establishing captive desalination plants.

The government has also announced non-fiscal incentives designed to facilitate project implementation.

The policy seeks to improve the ease of doing business through streamlined approval mechanisms, flexible building and development regulations, additional Floor Space Index (FSI), and coordinated support for power supply, water connectivity and statutory clearances.

The state government said the initiative is intended to attract domestic and international investment, generate high-value employment, strengthen India's digital sovereignty and establish Gujarat as a major hub for AI, cloud and digital infrastructure.

It has invited global hyperscalers, cloud service providers, AI companies, digital infrastructure developers, technology firms, and institutional investors to participate in the program through the policy portal, where details of eligibility, incentives, and the Pre-Expression of Interest process have been made available.