Gujarat notifies data centre policy targeting 7.5 GW green AI capacity by 2029
Synopsis
Gujarat has formally notified a policy to build 7.5 GW of Hyperscale Green AI Data Centre capacity by 2029 — with Dholera SIR positioned as one of the world's largest such hubs. The mandatory 51% green energy clause makes this one of the most sustainability-linked data centre policies in India, arriving as global hyperscalers race to lock in Asian AI infrastructure.
Key Takeaways
The Gujarat government formally notified the Viksit Gujarat Data Centre Policy 2026-29 on 7 August 2026 .
The policy targets 7.5 GW of Hyperscale Green AI Data Centre capacity by 2029 .
Eligible projects must source at least 51% of operational electricity from renewable and green energy .
Dholera Special Investment Region (SIR) is earmarked as one of the world's largest Hyperscale Green AI Data Centre hubs.
Incentives include capital subsidy, interest subsidy, power tariff subsidy, SGST reimbursement, and stamp duty exemption.
Gujarat cites nearly 74 GW of installed power capacity and GIFT City as key competitive advantages.
The Gujarat government on Friday, 7 August 2026 formally notified the 'Viksit Gujarat Data Centre Policy 2026-29', laying out a plan to develop 7.5 GW of Hyperscale Green AI Data Centre capacity and establish the state as India's foremost destination for next-generation digital infrastructure. The Government Resolution (GR) was issued after Chief Minister Bhupendra Patel unveiled the policy in Gandhinagar.
What the Policy Covers
The policy targets infrastructure for artificial intelligence, cloud computing, high-performance computing, and allied digital services. A defining condition is sustainability: eligible data centre projects must source at least 51% of their operational electricity from renewable and green energy, directly linking the state's data centre ambitions to its clean energy transition. The initiative is framed as aligned with the national goal of 'Viksit Bharat at 2047'.
Why Gujarat Sees Itself as the Natural Host
The state government cited nearly 74 GW of installed power capacity, an extensive renewable energy ecosystem, optical fibre connectivity, and established industrial infrastructure as competitive advantages. Notably, the Dholera Special Investment Region (SIR) has been earmarked for development as one of the world's largest Hyperscale Green AI Data Centre hubs, supported by planned urban infrastructure and its strategic location. GIFT City further reinforces the state's positioning for hyperscale and AI infrastructure investment.
Fiscal and Non-Fiscal Incentives
To attract domestic and international capital, the policy offers a comprehensive incentive package including capital subsidy, interest subsidy, power tariff subsidy, reimbursement of electricity duty, exemption from stamp duty and registration fees, SGST reimbursement, and financial assistance for establishing captive desalination plants. On the non-fiscal side, the government has promised streamlined approvals, flexible building and development regulations, additional Floor Space Index (FSI), and coordinated support for power supply, water connectivity, and statutory clearances.
Who Is Being Invited to Participate
The Gujarat government has formally invited global hyperscalers, cloud service providers, AI companies, digital infrastructure developers, technology firms, and institutional investors to engage through the policy portal. Details of eligibility criteria, incentives, and the Pre-Expression of Interest process are available on the portal. The state government said the initiative is designed to attract investment, generate high-value employment, and strengthen India's digital sovereignty.
What Comes Next
With the GR now formally notified, the focus shifts to converting policy intent into committed investment. The Dholera SIR development timeline and the pace of renewable energy procurement by incoming data centre operators will be early indicators of execution credibility. Industry observers will watch whether the 51% green energy mandate is enforced strictly or diluted under investment pressure.
Point of View
But the credibility test lies in the 51% green energy mandate — a clause that sounds progressive but could become a negotiating chip when large hyperscalers push back on timelines. Dholera has been promised as a world-class hub for years across multiple policy cycles; land acquisition, utility readiness, and last-mile connectivity have historically lagged the headline numbers. The real signal to watch is not the GR notification but the first binding investment agreements and whether the renewable energy procurement keeps pace with load growth. India's data centre sector is heating up fast, and states that can credibly deliver power — green or otherwise — will win; those that cannot will find hyperscalers routing capacity elsewhere.
NationPress
7 Aug 2026
Frequently Asked Questions
What is the Viksit Gujarat Data Centre Policy 2026-29?
It is a state government policy formally notified on 7 August 2026 that aims to develop 7.5 GW of Hyperscale Green AI Data Centre capacity in Gujarat by 2029. The policy offers fiscal and non-fiscal incentives to attract global hyperscalers, AI companies, and digital infrastructure investors.
What is the green energy requirement under this policy?
Eligible data centre projects must source at least 51% of their operational electricity consumption from renewable and green energy sources. This condition directly links data centre growth to Gujarat's clean energy transition.
Why has Dholera been chosen as a data centre hub?
Dholera Special Investment Region (SIR) has been identified for development as one of the world's largest Hyperscale Green AI Data Centre hubs due to its planned urban infrastructure, strategic location, and proximity to Gujarat's renewable energy ecosystem.
What incentives does the Gujarat data centre policy offer?
The policy provides capital subsidy, interest subsidy, power tariff subsidy, electricity duty reimbursement, stamp duty and registration fee exemption, SGST reimbursement, and financial assistance for captive desalination plants, alongside streamlined approvals and additional FSI.
Who can participate in the Gujarat data centre policy?
Global hyperscalers, cloud service providers, AI companies, digital infrastructure developers, technology firms, and institutional investors are eligible. They can engage through the policy portal, where eligibility criteria and the Pre-Expression of Interest process are detailed.
