Gandhinagar

TheGujarat government on Thursday launched the 'Viksit Gujarat - Data Centre Policy 2026-29', a dedicated policy aimed at attracting investments in hyperscale data centres, artificial intelligence infrastructure and digital services, with Chief Minister Bhupendra Patel unveiling the policy booklet at a state function in Gandhinagar.

Deputy Chief Minister Harsh Sanghavi, Science and Technology Minister Arjun Modhwadia, Chief Secretary Manoj Kumar Das, senior government officials and representatives from the technology industry attended the launch.

Science and Technology Department Secretary P Bharathi said the policy was intended to create the infrastructure needed to support India's growing digital economy.

"Data is even more valuable than oil. Every digital payment, every AI model, every cloud application, every online transaction, every government service and every innovation is powered by data," she said, adding that data centres had become strategic digital infrastructure for developed economies.

She said India generates nearly 20 per cent of the world's data but accounts for only around three per cent of global data centre capacity, while the United States and China together hold about 70 per cent of worldwide capacity.

"The question is, where will India's future digital infrastructure be built? Gujarat is ready to answer that question," she said. P Bharathi also announced that two cable landing stations are planned in Gujarat and that another cable landing station project would be announced soon, saying the additional international connectivity would strengthen the state's attractiveness as a data centre destination.

According to the policy presented at the launch, Gujarat has recognised data centres as strategic infrastructure and will offer fiscal incentives including capital and interest subsidies, power tariff support, SGST reimbursement, electricity duty reimbursement, support for desalination plants and stamp duty exemptions.

Officials said the policy also includes non-fiscal incentives designed to create a competitive environment for hyperscale data centre investments and AI infrastructure.

The policy document states that Gujarat's existing infrastructure includes 69 gigawatts of installed power capacity, of which 47 gigawatts comes from renewable energy, alongside industrial hubs such as Dholera and GIFT City.

It projects that global data centre capacity could approach 200 gigawatts by the end of the decade, and says, "Gujarat aims to play a larger role in that expansion while supporting the state's target of becoming a $3.5 trillion economy by 2047".

Addressing the gathering, Science and Technology Minister Arjun Modhwadia said India had historically missed earlier industrial transformations but had emerged as a leader in sectors such as vaccine manufacturing and was becoming a major player in semiconductors.

He said the next phase of growth would be driven by artificial intelligence and quantum computing.