3 weeks ago
Gujarat targets 7.5 GW Green AI data centre capacity
The government of Gujarat, a state in India, has announced a new plan called the Viksit Gujarat Data Centre Policy.
Data centres are giant buildings full of computers that store information and keep the internet, apps and artificial intelligence working.
Gujarat wants to become one of India's biggest places for these buildings, and it hopes to attract investments of around Rs 6 lakh crore.
The plan's goal is to create 7.5 GW of data centre capacity, which is a huge amount of computing power.
One area called Dholera is meant to become one of the biggest data centre hubs in the world.
To keep the planet safe, companies must get at least 51 per cent of their electricity from clean sources like solar and wind power.
The government will help companies with subsidies, tax breaks and help building water plants.
It will also make approvals faster and allow bigger buildings.
The aim is to create good jobs and make India stronger in digital technology.
The Gujarat government notified the Viksit Gujarat Data Centre Policy 2026-29, targeting 7.5 GW of hyperscale Green AI data centre capacity and around Rs 6 lakh crore in investment.
Dholera Special Investment Region (SIR) is planned as one of the world's largest hyperscale Green AI data centre hubs.
Eligible data centre projects must source at least 51 per cent of their operational electricity from renewable and green energy sources.
Incentives include a 2.5 per cent Dholera capital subsidy, up to 4 per cent annual interest subsidy for 10 years, Rs 1 per unit power tariff subsidy for 20 years, electricity duty reimbursement, stamp duty and SGST relief, and desalination assistance.
Overall financial assistance is capped at 75 per cent of eligible fixed capital investment over 20 years, and eligible projects need a minimum approved IT load of 150 MW.
- Who
- The Government of Gujarat, which notified the policy targeting hyperscalers, cloud service providers, AI firms and digital infrastructure developers.
- What
- A state policy targeting 7.5 GW of hyperscale Green AI data centre capacity and around Rs 6 lakh crore in investment, with Dholera SIR as a key hub.
- Where
- Gandhinagar, Gujarat, India, with the Dholera Special Investment Region as the main development hub.
- When
- Notified on Friday, covering the period 2026-29.
- Why
- To meet growing demand for AI, cloud computing, high-performance computing and digital services, attract domestic and global investment, create high-value jobs and strengthen India's digital sovereignty.
Key facts
- Policy
- Viksit Gujarat Data Centre Policy 2026-29
- Target capacity
- 7.5 GW of hyperscale Green AI data centre capacity
- Target investment
- Around Rs 6 lakh crore
- Renewable energy requirement
- At least 51% of operational electricity from renewable and green sources
- Key development hub
- Dholera Special Investment Region (SIR)
- Financial incentives
- 2.5% Dholera capital subsidy; up to 4% annual interest subsidy for 10 years; Rs 1/unit power tariff subsidy for 20 years; stamp duty and SGST relief; desalination assistance
- Overall assistance cap
- 75% of eligible fixed capital investment, disbursed over 20 years
- Project eligibility
- Minimum approved IT load of 150 MW; state's installed power capacity is nearly 74 GW










