The Gujarat government has announced the Developed Gujarat Data Center Policy 2026-29 to attract large investments in digital infrastructure and make the state a major hub for AI-powered data centres.
The policy aims to develop 7.5 gigawatts of data centre capacity and strengthen Gujarat’s position in the fast-growing digital economy.
Under the new policy, companies setting up data centres will receive several incentives, including 100% exemption from stamp duty and registration fees, electricity subsidies, interest subsidies, and single-window clearance for faster project approvals.
Projects set up in Dholera will receive an additional 2.5% capital subsidy for 10 years. The government said Dholera has already received strong interest from investors and is expected to become one of the world’s largest data centre hubs.
The state has received proposals for 10 gigawatts of data centre capacity and plans to develop up to 8 gigawatts in the coming years.
Chief Secretary Manoj Kumar Das said Gujarat’s long coastline and abundant solar and wind energy make it well suited for large data centres, which require significant power and water. He said the policy is expected to attract around ₹6 lakh crore in investment and create thousands of jobs.
The policy also makes it mandatory for data centres to use at least 51% green energy. Water requirements will be met mainly through desalination plants, reducing pressure on freshwater resources.
Key benefits under the new policy
- 100% exemption on stamp duty and land registration fees.
- ₹1 per unit electricity subsidy for 20 years.
- 100% reimbursement of electricity duty for 20 years.
- 4% interest subsidy for 10 years.
- Additional 2.5% capital subsidy for projects in Dholera.
- Single-window system for faster project approvals.
- SGST reimbursement for eligible projects.
- Data centres will be treated as an essential service, ensuring uninterrupted operations.