Gujarat has launched the Viksit Gujarat Data Center Policy 2026–29, aiming to attract Rs 6 lakh crore in investment and build 7.5 GW of data centre capacity over the policy period. Announced by Chief Minister Shri Bhupendra Patel and Deputy Chief Minister Shri Harsh Sanghavi at Mahatma Mandir in Gandhinagar, the policy aims to significantly scale the state’s digital economy, drawing an expected investment of approximately ₹6 lakh crore ($62.9 billion) and generating massive employment opportunities.

The policy arrives at a pivotal moment, as the Indian Union Budget has introduced a 20-year tax holiday for global data center infrastructure providers, creating a highly competitive atmosphere among states such as Maharashtra, Tamil Nadu, and Telangana to attract hyperscale and Artificial Intelligence (AI) investments.

Gujarat’s new Data Centre Policy should significantly strengthen the state’s position in digital infrastructure. Early hyperscale AI and cloud projects are expected to draw substantial ancillary investments in localized power generation, new undersea cable landing stations, and a surge in skilled IT jobs that ripple well beyond the boundaries of the data centres themselves.

Prabhu Ram, VP – Industry Research Group, CyberMedia Research (CMR)

Source: Dataquest