The Gujarat 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. Speaking at the event, 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 USD 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. "Data is the new oil well of the developing economy," Modhwadia said. Referring to global data centre capacity, he said: "The United States has nearly 5,500 data centres and the United Kingdom more than 500, while India has about 200.
The United States has around 30 gigawatts of installed data centre capacity compared with about 2-3 gigawatts in India, with projects in the pipeline expected to take the country to around eight gigawatts." The minister said Gujarat had already received proposals for around 10 gigawatts of data centre capacity.
"This is not just about data centres; it is part of the entire AI ecosystem. If we become leaders in data centres, Gujarat will become not only the country's but also the world's leader in the AI ecosystem," he said.
Modhwadia said the state government intended to develop up to eight gigawatts of data centre capacity in Gujarat and invited domestic and international investors to invest in the sector, stating that "the government would support the development of the state's digital infrastructure ecosystem".