Gujarat's Bold Leap: Pioneering Green AI Data Centres for Digital Future

The Gujarat government has unveiled the Viksit Gujarat Data Centre Policy 2026-29, striving to position the state as a leader in hyperscale Green AI data centres. The initiative aims to attract investments and enhance India's digital economy with a focus on sustainable development and cutting-edge digital infrastructure.

The Gujarat government has taken a significant step toward positioning the state as a leader in digital infrastructure by notifying the Viksit Gujarat Data Centre Policy 2026-29. The policy envisions establishing Gujarat as a major hub for hyperscale Green AI data centres, targeting a creation of 7.5 GW capacity within the state. This initiative is an integral part of realizing the vision of Viksit Bharat 2047, aiming to fortify India's digital economy with cutting-edge infrastructure to support artificial intelligence, cloud computing, and high-performance computing.

Gujarat's strategic advantages make it an appealing location for such developments. With nearly 74 GW of installed power capacity, a robust renewable energy ecosystem, extensive optical fibre network, and strong industrial backbone, the state is poised to attract hyperscalers and cloud service providers. The new policy focuses on the Dholera Special Investment Region, positioning it as a premier site for hyperscale Green AI data centre hubs by leveraging planned infrastructure and sustainable practices.

To attract investments, the policy offers various fiscal incentives such as a capital subsidy, interest subsidy, and power tariff relief, among others. It also emphasizes non-fiscal improvements like streamlined approvals and flexibility in building regulations to enhance the ease of doing business. The state government is making a concerted effort to draw in global hyperscalers, cloud service providers, AI companies, and institutional investors, aiming for Gujarat to become a cornerstone in India's digital infrastructure landscape.