Overview
The Gujarat Government unveiled the Viksit Gujarat – Data Centre Policy 2026‑29 on 10 July 2026, making the state the first in India to issue a dedicated data‑centre policy. The policy aims to draw investments of about ₹6 lakh crore and to build 7.5 GW of data‑centre capacity in the next few years, positioning Gujarat alongside Maharashtra, Tamil Nadu and Telangana as a digital‑infrastructure hub.
Key Developments
- Fiscal incentives: capital subsidy, interest subsidy, power‑tariff support, full reimbursement of SGST, electricity duty and stamp‑duty exemption.
- Non‑fiscal incentives: single‑window clearances, 20 % capital support for captive desalination plants, and guaranteed uninterrupted power and water supply.
- Green‑energy mandate: at least 51 % of power must come from renewable energy sources.
- Classification as an Essential Service under the Gujarat Essential Services Maintenance Act, 1972.
- Targeted sectors: AI, cloud computing, digital payments, e‑commerce, electronics manufacturing and other data‑intensive industries.
Important Facts
India generates nearly 20 % of the world’s data but hosts only about 3 % of global data‑centre capacity, while the United States and China together hold roughly 70 %. Gujarat’s strong renewable‑energy base (solar and wind) and its industrial corridors such as Dholera and GIFT City provide a competitive edge, especially because electricity is a major operating cost for data centres.
Cooling is a critical requirement. Large hyperscale centres generate massive heat, and water‑based cooling towers are commonly used. Gujarat, despite water stress, plans to supply round‑the‑clock water and to support desalination, leveraging its long coastline.
AI workloads dramatically increase power demand; a single AI prompt can consume as much energy as a microwave running for one second. Hence the policy’s green‑energy requirement.
Exam Relevance
The policy touches on several GS topics: GS 3 – Economy (digital infrastructure, investment attraction, renewable‑energy integration), GS 4 – Governance (state‑level policy formulation, single‑window clearance, essential‑service classification), and GS 3 – Environment (water management, desalination, green‑energy mandates). Understanding how states compete for digital infrastructure helps answer questions on federal‑state dynamics and economic diversification.
Way Forward
To realise the policy’s goals, Gujarat must ensure sustainable water sourcing, maintain policy stability over the 20‑30 year lifespan of data centres, and continue expanding renewable‑energy capacity. Coordination with central schemes on digital economy and climate‑friendly initiatives will enhance investor confidence. Monitoring the impact on employment, ancillary industries and regional development will be crucial for assessing the policy’s long‑term success.