Economy & Banking

Gujarat Launches India's First Data Centre Policy, Targets Rs 6 Lakh Crore and 7.5 GW

By TestNeeti Editorial TeamPublished Thursday, 9 July 2026 2 min readSource: The HinduArticle 8 of 20

The Gujarat government on 9 July 2026 launched the 'Viksit Gujarat Data Centre Policy 2026-29', becoming the first Indian state to unveil a dedicated data centre policy. Launched by Chief Minister Bhupendra Patel in Gandhinagar, the policy targets investments of Rs 6 lakh crore and the creation of 7.5 GW of data centre capacity over the policy period. It offers fiscal incentives including capital subsidy, interest subsidy, power tariff subsidy, SGST reimbursement, electricity duty reimbursement, support for desalination plants and stamp duty exemptions. The policy aims to make Gujarat a hub for hyperscalers and to enable innovation across cloud computing, AI and high-performance computing, while generating high-value jobs in cloud engineering and cybersecurity. Officials said the state has already received proposals from 14 companies.

Key Facts & Details

9 points

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Gujarat launched the 'Viksit Gujarat Data Centre Policy 2026-29' on 9 July 2026, the first such policy by an Indian state.
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It was launched by Chief Minister Bhupendra Patel in Gandhinagar.
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The policy targets Rs 6 lakh crore in investments and 7.5 GW of data centre capacity.
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It offers incentives such as capital, interest and power-tariff subsidies, SGST and electricity-duty reimbursement, and stamp-duty exemptions.
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The policy aims to attract hyperscalers and boost cloud computing, AI and high-performance computing.
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Officials said Gujarat has already received proposals from 14 companies to set up data centres.

Deep Dive

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Gujarat unveiled the policy ahead of a national data-centre framework, positioning itself early in the AI and cloud investment race.
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The policy emphasises industry-academia-startup collaboration and skilling in emerging technologies.
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Data centres are power- and water-intensive, which is why the policy includes power-tariff support and backing for desalination plants.

Exam Focus

Which state launched India's first Data Centre Policy, and what investment and capacity does it target?

Exam Relevance & Angle

State industrial and digital policies with clear targets are testable economy and state-GA items. The facts that Gujarat is the first state with a data centre policy, targeting Rs 6 lakh crore and 7.5 GW, tie into the wider AI and digital-infrastructure theme examiners increasingly probe.

Target Exams

SBI POIBPS POSSC CGLRRB NTPCUPSC CSEState PCS

Background & Context

Data centres are facilities housing large numbers of servers that store, process and distribute data, forming the backbone of cloud computing, AI and digital services. Global demand has surged with the growth of AI, and states and countries are competing to attract hyperscalers — the largest cloud operators such as global technology majors. Such facilities require reliable power, cooling (often water-intensive) and connectivity, so governments offer fiscal incentives to draw investment. Gujarat, one of India's most industrialised states, has a track record of policy-led investment attraction and hosts major initiatives; a dedicated data-centre policy positions it to capture a share of the fast-growing digital-infrastructure market, complementing India's broader Digital India and semiconductor push.