Quick Take
- Gujarat launched the Viksit Gujarat Data Centre Policy 2026-29 on July 9, 2026, in Gandhinagar.
- The policy targets up to 8 GW of capacity and expects over Rs 6 Lakh Cr in first-phase investment.
- Dholera is the main hub, with 14 investors and demand near double the 7.5 GW target.
In This Article
The Gujarat Data Centre Policy 2026-29 aims to make the state India’s leading hub for hyperscale data centres and artificial intelligence (AI) infrastructure, targeting up to 8 GW of capacity. Chief Minister Bhupendra Patel launched the policy on July 9, 2026, at Mahatma Mandir in Gandhinagar, with the state expecting over Rs 6 Lakh Cr in first-phase investment.
Called the Viksit Gujarat Data Centre Policy 2026-29, it is the first dedicated data centre policy by any Indian state, according to the Department of Science and Technology, Government of Gujarat. The policy blends capital subsidies, power tariff support and tax reimbursements with strong renewable energy and water rules. Science and Technology Minister Arjun Modhwadia said the state wants to lead India’s AI and data centre sector over the next decade.
StartupFeed Insight
The real signal here is not the Rs 6 Lakh Cr headline, it is the demand math. Investor interest already sits near 15 GW against a 7.5 GW target, so Gujarat is rationing capacity, not chasing it. That inverts the usual state-incentive story, where governments beg for takers. The 51% renewable mandate and desalination rule also lock in a cost structure only deep-pocketed hyperscalers can meet, which favours global cloud firms over small players. Watch for at least two firm anchor tenant announcements at Dholera by March 2027, likely tied to global technology partners. Founders and cloud buyers tracking India capacity should read this as StartupFeed’s early marker of a supply shift. By Avinash.
Gujarat Data Centre Policy: Key Numbers
The Gujarat Data Centre Policy 2026-29 sets a target of 7.5 GW of data centre capacity, with the state aiming to develop up to 8 GW overall. The government said it has already received proposals from 14 companies and expects over Rs 6 Lakh Cr in first-phase investment (Outlook Business, Akashvani News).
| Metric | Detail | Notes |
|---|---|---|
| Policy name | Viksit Gujarat Data Centre Policy 2026-29 | First state-level policy of its kind in India |
| Target capacity | 7.5 GW, up to 8 GW overall | Investor demand near double the target |
| Expected investment | Over Rs 6 Lakh Cr (first phase) | Government projection, not yet committed capital |
| Investor proposals | 14 companies | Several partnering with global technology firms |
| Minimum IT load | 150 MW | Eligibility floor for incentives |
| Launch date | July 9, 2026 | Gandhinagar, by CM Bhupendra Patel |
The most striking number is the demand gap. Deputy Chief Minister Harsh Sanghavi said requests have reached nearly twice the 7.5 GW target, which means Gujarat is fielding roughly 15 GW of interest.
About the Policy
The Viksit Gujarat Data Centre Policy 2026-29 is a state initiative launched on July 9, 2026, by the Government of Gujarat through its Department of Science and Technology. It offers fiscal and non-fiscal incentives to attract hyperscale data centres and AI infrastructure, with Dholera as the anchor hub. The policy supports Gujarat’s goal of becoming a USD 3.5 Trillion economy by 2047 and leans on the state’s 69 GW installed power base, of which 47 GW is renewable.
What incentives does the policy offer?
The Gujarat Data Centre Policy offers a stacked set of fiscal benefits to lower project costs. Eligible projects in the Dholera region get a 2.5% capital subsidy, an interest subsidy of up to 4% for 10 years, and a Re 1 per unit power tariff subsidy for 20 years. Investors also get 100% stamp duty and registration fee exemption, electricity duty reimbursement for 20 years, and SGST (State Goods and Services Tax) reimbursement on investment and operations.
Data is even more valuable than oil. Every digital payment, every AI model, every cloud application and every government service is powered by data, P. Bharathi, Secretary, Department of Science and Technology.
The catch is sustainability. Projects must source at least 51% of their electricity from renewable sources and meet water needs through captive desalination plants. To offset that, the policy gives desalination support of up to 20% of eligible capital cost, or Rs 2 Cr per million litres per day of capacity.
Why is Dholera the chosen hub?
Dholera is central to the Gujarat Data Centre Policy because it already has hyperscale-ready infrastructure in place. Deputy Chief Minister Harsh Sanghavi said Dholera is moving forward as the world’s largest data centre city, with a planned cluster of 7 to 8 GW. Supporting projects include the upcoming Dholera Airport and a planned semi-high-speed rail link from Ahmedabad.
If the world’s highest-capacity data centre city is located in one city, it will be Dholera, Harsh Sanghavi, Deputy Chief Minister, Gujarat.
The state credits its policy stability, uninterrupted power supply and long-term water planning for the strong pull. Dholera’s smart-city status and access to renewable power make it a natural fit for energy-hungry AI workloads.
How does India’s capacity compare globally?
India holds a small share of global data centre capacity despite producing a large share of the world’s data. Officials said India generates nearly 20% of the world’s data but accounts for only around 3% of global data centre capacity, while the United States and China together hold about 70%.
| Region | Data Centres | Installed Capacity |
|---|---|---|
| United States | Nearly 5,500 | Around 30 GW |
| United Kingdom | More than 500 | Not specified |
| India | About 200 | About 2-3 GW |
Global capacity could approach 200 GW by the end of the decade, per the policy document. That gap is exactly why Gujarat wants to move first, targeting up to 8 GW when the country today runs on just 2-3 GW.
What’s Next
The next test is conversion. Gujarat has 14 proposals and near 15 GW of stated interest, but signed agreements and ground-breaking will show whether the incentives truly land. Expect early anchor tenant deals at Dholera and further clarity on cable landing stations, with two already planned. Will Dholera turn its head start into firm, operational capacity before rival states catch up?
Frequently Asked Questions
Written by Avinash. Have a tip? Write to us at editorial@startupfeed.in.
