The Gujarat government on Thursday, 9 July 2026, launched the 'Viksit Gujarat – Data Centre Policy 2026-29', a dedicated framework to attract investments in hyperscale data centres, artificial intelligence infrastructure, and digital services. Chief Minister Bhupendra Patel unveiled the policy booklet at a state function in Gandhinagar, signalling the state's ambition to become a global node in the AI-driven digital economy.

Key Policy Incentives

Under the new policy, Gujarat has formally recognised data centres as strategic infrastructure. The fiscal incentive package includes capital and interest subsidies, power tariff support, SGST reimbursement, electricity duty reimbursement, support for desalination plants, and stamp duty exemptions. Non-fiscal incentives aimed at creating a competitive environment for hyperscale and AI infrastructure investments are also built into the framework, according to officials present at the launch.

Gujarat's Digital Infrastructure Advantage

The policy document highlights that Gujarat already possesses 69 gigawatts of installed power capacity, of which 47 gigawatts is sourced from renewable energy — a significant draw for power-hungry data centre operations. The state's established industrial corridors, including Dholera and GIFT City, are positioned as anchor zones for incoming investment.

Additionally, Science and Technology Department Secretary P. Bharathi announced that two cable landing stations are planned in Gujarat, with a third project set to be announced shortly. The enhanced international connectivity is expected to strengthen the state's case as a preferred data centre destination for global operators.

India's Data Gap — and Gujarat's Pitch

Addressing the gathering, P. Bharathi underscored a stark structural imbalance: India generates nearly 20 per cent of the world's data but accounts for only around 3 per cent of global data centre capacity. By contrast, the United States and China together hold approximately 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.

The policy projects that global data centre capacity could approach 200 gigawatts by the end of the decade, and positions Gujarat as a significant contributor to that expansion while supporting the state's target of becoming a USD 3.5 trillion economy by 2047.

Minister's Vision: From Data Centres to AI Leadership

Science and Technology Minister Arjun Modhwadia drew a pointed comparison at the event: the United States has nearly 5,500 data centres and the United Kingdom more than 500, while India has approximately 200. On installed capacity, the US operates around 30 gigawatts against India's current 2–3 gigawatts, with pipeline projects expected to push the national figure to roughly 8 gigawatts.

Modhwadia said Gujarat had already received proposals for around 10 gigawatts of data centre capacity and that the state government intends to develop up to 8 gigawatts within its borders. '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, extending an open invitation to domestic and international investors.

He also noted that while India had historically missed earlier industrial transformations, it had emerged as a leader in vaccine manufacturing and was becoming a significant player in semiconductors — with AI and quantum computing identified as the next growth frontier.

What Comes Next

Deputy Chief Minister Harsh Sanghavi, along with Chief Secretary Manoj Kumar Das and senior officials from the technology industry, attended the launch, reflecting the cross-departmental weight the state is placing on the initiative. With proposals already totalling 10 gigawatts and international connectivity infrastructure in the pipeline, Gujarat's data centre ambitions are moving from policy to active investor engagement.