Gujarat unveils Data Centre Policy to attract AI and hyperscale cloud investments

The Gujarat government has released its first Data Centre Policy for 2026‑29, aiming to create 7.5 GW of data‑centre capacity and draw both domestic and global cloud and AI providers. The policy targets around Rs 6 trillion of investment and requires projects to have a minimum approved IT load of 150 MW.

Incentives include a 2.5 % capital subsidy in the Dholera region, up to a 4 % interest subsidy on term loans for ten years (capped at Rs 250 million annually), a power‑tariff subsidy of Rs 1 per unit for 20 years, full exemption from stamp duty and registration charges, and 100 % reimbursement of electricity duty for two decades. Additional support covers SGST reimbursements, capital assistance for captive desalination plants, and relaxed building‑norm requirements. Companies can receive up to 75 % of eligible fixed‑capital costs, disbursed over a maximum of 20 years, provided at least 51 % of electricity for core operations comes from renewable sources.

The framework also promises fast‑track statutory approvals through a single‑window investor‑facilitation portal, open‑access electricity, dual power feeders, and assured water supply. Officials say the policy will spur high‑value jobs, skill‑development pathways in cloud engineering and cybersecurity, and position Gujarat as India’s premier hyperscale AI data‑centre hub.